Document ID: chunk:federal_register_of_legislation:C2004A00853:clause:2_106ya:p2
Version: federal_register_of_legislation:C2004A00853
Segment Type: clause
Provision Reference: sch 2 cl 106YA (pt 2/3)
Character Range: 6402–9091

HEC debt is discharged under section 106O because the bankrupt incurred another accumulated HEC debt (the replacement HEC debt) under section 106N;
then:
 (c) after the replacement HEC debt is incurred, those subsections apply (subject to any later application of this subsection) to the replacement HEC debt instead of the old HEC debt; and
 (d) for that purpose:
 (i) a proof of debt under the Bankruptcy Act in relation to the pre‑bankruptcy part of the old HEC debt (including because of a previous application of this subsection or subsection (7)) is taken to relate, to the extent of that proof, to the pre‑bankruptcy part of the replacement HEC debt; and
 (ii) if at the time the old HEC debt is discharged under section 106O, a semester debt of the bankrupt is also discharged under that section—a proof of debt under the Bankruptcy Act in relation to the semester debt is taken to relate, to the extent of that proof, to the pre‑bankruptcy part of the replacement HEC debt.

Replacement of semester debt only

 (7) If:
 (a) immediately before the bankrupt's bankruptcy date, the bankrupt had:
 (i) one or more undischarged semester debts (an old semester debt); and
 (ii) no undischarged accumulated HEC debt; and
 (b) on or after the bankruptcy date, the unpaid part of an old semester debt is discharged under section 106O because the bankrupt incurred an accumulated HEC debt (the new HEC debt) under section 106N;
then:
 (c) after the new HEC debt is incurred, subsections (2) to (5) apply (subject to any later application of subsection (6)) to the new HEC debt instead of the old semester debt; and
 (d) for that purpose, a proof of debt under the Bankruptcy Act in relation to the old semester debt is taken to relate to the pre‑bankruptcy part of the new HEC debt.

 (8) Subject to subsection (9), the pre‑bankruptcy part of a bankrupt's accumulated HEC debt is the amount that would be the bankrupt's relevant debt calculated in accordance with subsections 106Q(2) and (3), if:
 (a) that amount was calculated as at the time immediately before the bankrupt's bankruptcy date; and
 (b) the reference in paragraph 106Q(2)(a) to the person's accumulated HEC debt referred to in paragraph (1)(b) were a reference to the person's accumulated HEC debt on the 1 June immediately preceding the bankruptcy date.

 (9) If:
 (a) immediately before the bankrupt's bankruptcy date, the bankrupt had one or more undischarged semester debts; and
 (b) at a time (the discharge time) on or after the bankruptcy date, the unpaid part of those debts (the discharged amount) was discharged because of the operation of section 106O;
then:
 (c) if the bankrupt did not have an accumulated HEC