As enacted

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Rescue, Rehabilitation and Insolvency (Corporate and Personal) Act 2026 · As enacted · Part VI

126. Debt Repayment Agreement

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

(1)

In this section “Debt Repayment Agreement”

means a written agreement between a bankrupt debtor and the Bankruptcy Trustee which provides—

(a)

that the bankrupt debtor is to pay to the Bankruptcy

Trustee an amount equal to a speciﬁed part or proportion of the bankrupt debtor's income for a speciﬁed period; or

(b)

that, where a third party has been duly notiﬁed by the Bankruptcy Trustee and the bankrupt debtor, a third party is to pay to the Bankruptcy Trustee a speciﬁed proportion of money due to the bankrupt debtor by way of income for a speciﬁed period.

(2)

A provision of Debt Repayment Agreement of a kind speciﬁed in paragraph (a) or (b) of subsection (1) may be enforced as if it were a provision of a Debt Repayment Order.

(3)

Sums received by the Bankruptcy Trustee under a Debt

Repayment Agreement form part of the Bankruptcy Estate.

Rescue, Rehabilitation and Insolvency

(4)

A Debt Repayment Agreement must specify the period during which it is to have eﬀect and that period may not end after the discharge of the bankrupt debtor.

(5)

In accordance with section 36 the terms of a Debt

Repayment Arrangement shall not have the eﬀect of reducing the income of the bankrupt debtor below protected income.

(6)

A Debt Repayment Agreement may, subject to the provisions of this section be varied—

(a)

by written agreement between the parties; or

(b)

by the court on an application made by the bankrupt debtor or the Bankruptcy Trustee.

(7)

The court—

(a)

may not vary a Debt Repayment Agreement so as to include provisions of a kind which would have the eﬀect of reducing the income of a bankrupt debtor below what is necessary for meeting the reasonable domestic needs of the bankrupt debtor and the dependants; and

(b)

shall grant an application to vary a Debt

Repayment Agreement if and to the extent that the court considers variation necessary to avoid the eﬀect of reducing the income of a bankrupt debtor below what is necessary for meeting the reasonable domestic needs of the bankrupt debtor and the dependants.

Read on from s 127

Part VII

Personal Insolvency Register

Read on from Part VII

Part VIII

Read on from Part VIII

Part IX

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Part X

Compromises

Read on from Part X

Part XI

Micro Small Medium Enterprise (MSME) Company Debt Restructuring Arrangements

Read on from Part XI

Part XII

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Part XIII

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Part XIV

Cross - Border Insolvency

Read on from Part XIV

Part XV

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Part XVI

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Part XVII

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