Bankruptcy Act Clarification?
DOES THIS MEAN A CREDITOR CANNOT LIST A DEFAULT AGAINST A PERSONS NAME ONCE THE AGREEMENT IS ACCEPTED FOR PROCESSING?
BANKRUPTCY ACT 1966 - SECTION 185F
Effect of accepting a debt agreement proposal for processing
(1) After acceptance of a debt agreement proposal for processing is recorded in the National Personal Insolvency Index:
(a) a creditor cannot apply for enforcement of, or enforce, a remedy against the debtor's person or property in respect of a frozen debt; and
(b) a sheriff must not take action, or further action, to execute, or sell property under, any process issued by a court to enforce payment of a frozen debt owed by the debtor; and
(c) a person who is entitled under a law of the Commonwealth, or of a State or Territory of the Commonwealth, to retain or deduct money from money that is or will be owing or payable to the debtor must not retain or deduct money
Answer:
Your question isn't clear enough to give a precise answer. But if you're asking if a creditor is prevented from reporting that you defaulted on a debt simply because you've filed for protection under the bankruptcy, the answer is no.
What the creditor may not do is seek collection, enforcement or otherwise act outside of the terms of a debt agreement.
Yes and no - once an agreement is accepted for processing then, provided the debtor is entitled to give such an agreement (see s.185C(4)), a creditor is restrained from listing a default only in respect of a "frozen debt" (i.e. it doesn't prevent someone taking action in respect of another debt), and it is limited in time until one of the events listed in s.185F(1)(d) to (f) - note the lapsing in s.185G.
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