Commonwealth Consolidated Acts

BANKRUPTCY ACT 1966 - SECT 185T

Persons who may apply for an order

  (1)   The debtor (or the debtor's personal representative if the debtor has died), a creditor or the Official Receiver may apply to the Court for an order declaring that all, or a specified part, of a debt agreement is void.

Grounds for applying for an order

  (2)   A person mentioned in subsection   (1) may apply for an order on one or more of the following grounds:

  (a)   there is doubt on a specific ground that all or part of the debt agreement was not made in accordance with this Part   or does not comply with this Part;

  (b)   the statement of affairs lodged with the debt agreement was deficient because it omitted a material particular or because it was incorrect in a material particular;

  (c)   an administrator of the debt agreement has committed a breach of duty in relation to the agreement;

  (d)   if the administrator of the debt agreement is a registered debt agreement administrator--the administrator has breached a condition determined in an instrument under subsection   186F(4) or 186G(2B);

  (e)   if the administrator of the debt agreement is a registered trustee--the administrator has breached a condition imposed under section   20 - 35 of Schedule   2, to the extent that the condition relates to the administration of debt agreements.

Time limit on applying for an order

  (3)   A person cannot apply for an order declaring a debt agreement void after all the obligations created by the agreement have been discharged.

Simultaneous application for a sequestration order

  (4)   A creditor may include an application for a sequestration order in an application for an order declaring all or part of a debt agreement void.

Effect of applying for a sequestration order

  (5)   For the purposes of this Act, making an application for a sequestration order under subsection   (4) is taken to be presenting a creditor's petition against the debtor, but subsection   43(1), sections   44 and 47, subsections   52(1) and (2) and Part   XIA do not apply in relation to the application.