PART 5APPROVAL OF DEBT PAYMENT PROGRAMMES

Discretionary conditions30

1

A debt payment programme on approval under regulations 25, 26 or 27, or approval of a variation under regulation 39, may be made subject to one or more of the conditions specified in paragraph (2).

2

A specified condition is that the debtor shall–

a

realise, and distribute amongst the creditors the value of, an asset of the debtor other than an asset excepted by paragraph (3);

b

sign and deliver a payment instruction to an employer;

c

seek agreement from a creditor to pay a continuing liability under regulation 34;

d

complete, and submit when due, a tax or duty return or declaration;

e

maintain an emergency fund in accordance with paragraph (4); or

f

be bound by any other reasonable condition intended to secure completion of the programme.

3

An excepted asset is–

a

a dwellinghouse or mobile home occupied by a debtor as the debtor’s home;

b

an asset that is exempt from attachment under section 11 (articles exempt from attachment) of, or that is not a non-essential asset under schedule 2 (non essential assets) to, the Act.

4

In respect of an emergency fund, the debtor shall–

a

make payments at the rate specified by the DAS administrator, into an account designated by the administrator for the purpose of the fund; and

b

make no payment from the fund other than a payment for–

i

an emergency repair as specified in paragraph (5); or

ii

an essential requirement of the debtor or an immediate family member who is maintained by the debtor.

5

An emergency repair is one required to maintain–

a

a dwellinghouse occupied by the debtor in wind and water tight condition;

b

in reasonable working order any item that is not a non-essential asset for the purpose of Schedule 2 of the Act;

c

a vehicle required by the debtor for travelling to work, or other essential purpose.