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The Removal of Debt Agreements From Public Records

By Administrator 09 June, 2015

Debt Free Australia has long taught their loyal readers and clients that one of the main consequences of entering into a Debt Agreement is that your name would be permanently listed on the National Personal Insolvency Index (NPII). Although this is not often looked at, this meant that a public record would always document your period of personal insolvency and include some personal information about you.

But a new move by the Australian Financial Security Authority (AFSA) means the way your Debt Agreement information is publicised is changing. In March 2014, amendments were made to the Privacy Act 1988 that saw time limits imposed on the retention of personal insolvency information by credit reporting bodies. Similarly, new amendments to the Bankruptcy Regulations 1996are currently being prepared which will enact similar time limits on the public listing of Debt Agreements on the NPII.

Following the implementation of these changes, information relating to Debt Agreements and Debt Agreement Proposals will be removed from the NPII by the Official Receiver within one month after the later of two given days (as follows):

  1. If a Debt Agreement ends under section 185N of the Act, the two days are:
    • 5 years after the day on which the Debt Agreement was made;
    • The day on which the Debt Agreement ends.
  2. If a Debt Agreement is terminated under section 185P, 185Q, 185QA or 185R of the Act:
    • 5 years after the day on which the Debt Agreement was made;
    • 2 years after the day on which the Debt Agreement is terminated.
  3. If an order is made under section 185U of the Act declaring the entireDebt Agreement void:
    • 5 years after the day on which the Debt Agreement was made;
    • 2 years after the day on which the order is made.

It is important to note that whilst this information will be removed from the NPII, it will continue to be retained on AFSA’s database. However, it will no longer be publicly searchable.

For more information on the removal of a Debt Agreement and related information from the NPII, or to find out how this affects your own personal insolvency record, give us a call today on 1800 676 598 , or email us at info@debtfreeaustralia.com.au