The Role and Use of Debt Agreements in Australian Personal Insolvency Law

Insolvency Law Journal, Vol. 19, No. 3, pp. 168-201, 2011

49 Pages Posted: 12 Oct 2011

See all articles by Ian Ramsay

Ian Ramsay

Melbourne Law School - University of Melbourne

Cameron Sim

University of Melbourne - Centre for Corporate Law and Securities Regulation

Date Written: October 11, 2011

Abstract

The authors report the results of an empirical study of the use of debt agreements in Australian personal insolvency law. Debt agreements were introduced into Australian personal insolvency law in 1996 as an alternative to bankruptcy. This alternative has become increasingly popular, and in 2010 debt agreements represented 23% of all new personal insolvencies. We consider the role and use of debt agreements in Australian personal insolvency law. This includes examination of the various stages of the debt agreement process and the key differences between the characteristics of debt agreement debtors and bankrupts. We also explore issues concerning the current regime, including the role of creditors and debt agreement administrators; the high termination and low completion rates of debt agreements; and whether debt agreements serve as a viable alternative to bankruptcy.

Suggested Citation

Ramsay, Ian and Sim, Cameron, The Role and Use of Debt Agreements in Australian Personal Insolvency Law (October 11, 2011). Insolvency Law Journal, Vol. 19, No. 3, pp. 168-201, 2011. Available at SSRN: https://ssrn.com/abstract=1942125

Ian Ramsay (Contact Author)

Melbourne Law School - University of Melbourne ( email )

University Square
185 Pelham Street, Carlton
Victoria, Victoria 3010
Australia
+61 3 8344 5332 (Phone)

HOME PAGE: http://law.unimelb.edu.au/about/staff/ian-ramsay

Cameron Sim

University of Melbourne - Centre for Corporate Law and Securities Regulation ( email )

Victoria 3010
Australia

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