On 27 September 2018, the Senate passed the Bankruptcy Amendment (Debt Agreement Reform) Bill 2018 to reform the Bankruptcy Act 1966 insofar as it relates to Debt Agreements.
A Debt Agreement is an arrangement which is an alternative to enter into bankruptcy as an individual can enter into an agreement with their creditors concerning arrangements to pay their debts.
The reforms aim to better regulate the Debt Agreement regime in light of their increased popularity over the past decade and include changes to:
The period of a Debt Agreement;
Eligibility to enter into a Debt Agreement;
The Official Receiver’s powers to refuse the acceptance of a Debt Agreement proposal in exceptional circumstances; and
- The Inspector-General’s investigation and inquiry powers.