12ZWApplication of the Bankruptcy Act

#### 12ZW Application of the Bankruptcy Act (1) This section applies if, at any time after a financial supplement contract (the contract) is entered into between a participating corporation (the corporation) and a student, including a time after the end of the contract period: (a) the student becomes bankrupt; or (b) the student enters into a personal insolvency agreement under Part X of the Bankruptcy Act 1966. (2) A debt arising under or out of the contract is not a provable debt in the bankruptcy or for the purposes of the personal insolvency agreement. (3) Any right of the Commonwealth or of the corporation to bring an action or other proceeding against the student in respect of such a debt is not affected by the bankruptcy or personal insolvency agreement. (4) The trustee of the estate of the bankrupt student or the trustee of the personal insolvency agreement, as the case may be, is not entitled to recover under the Bankruptcy Act 1966 any payment made by the student to the Commonwealth or to the corporation in respect of such a debt. (5) A reference in this section to a debt arising under or out of the contract includes a reference to: (a) the amount outstanding at any time under the contract; and (b) an amount that the student is liable to pay under paragraph 12QB(2)(d), 12QC(2)(d), 12S(2)(d) or 12U(2)(c); and (c) any accumulated FS debt that discharges, or discharges the unpaid part of, an FS debt; but does not include a reference to: (d) a debt constituted by an obligation to repay the amount of a payment that, because of subparagraph 12Q(2)(b)(i), 12QA(2)(b)(i), 12R(2)(b)(i) or 12T(2)(b)(i), is not a payment of financial supplement made under the contract; or (e) an FS assessment debt that is required to be paid in respect of an accumulated FS debt.