Section 185MD — Bankruptcy Act 1966 (Cth)

Scope

(1) This section applies if:

(a) a proposal to vary a debt agreement is given under section 185M; and

(b) the applicable deadline has not arrived; and

(c) the proposal has not been accepted.

Withdrawal of proposal

(2) If:

(a) the Official Receiver becomes aware that the relevant subsection 185M(1B) statement was deficient because it omitted a material particular or because it was incorrect in a material particular; or

(b) the Official Receiver becomes aware of a material change in circumstances that:

(i) was not foreshadowed in the relevant subsection 185M(1B) statement; and

(ii) in the opinion of the Official Receiver, is capable of affecting an affected creditor’s decision whether or not to accept the proposal;

the Official Receiver may declare in writing that the proposal is withdrawn.

Notification of withdrawal

(3) If the Official Receiver makes a declaration under subsection (2), the Official Receiver must give written notice of the declaration, and the reasons for it, to:

(a) the debtor; and

(b) affected creditors who are known to the Official Receiver.

Review

(4) If the Official Receiver decides to make a declaration under subsection (2), the debtor or an affected creditor may apply to the Administrative Review Tribunal for review of the decision.

Related sections

• s 185MA — Procedures for dealing with proposals to vary debt agreements
• s 185MB — Inspection of creditor’s statement
• s 185MC — Acceptance of a proposal to vary a debt agreement
• s 185N — End of debt agreement on discharge of obligations under agreement
• s 185NA — Release of debtor from debts
• s 185P — Terminating a debt agreement by accepting a proposal

Research how courts apply s 185MD

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