85.— (1) Subject to subsection (2), where a Debt Settlement Arrangement has been deemed to have failed or has terminated under this Chapter, the debtor shall thereupon be liable in full for all debts covered by the Debt Settlement Arrangement (including any arrears, charges and interest that have accrued during the continuance of the Debt Settlement Arrangement but excluding any amounts paid in respect of those debts during the continuance of the Debt Settlement Arrangement), unless:

(a) the terms of the Debt Settlement Arrangement provide otherwise; or

(b) the appropriate court has made an order otherwise.

(2) Subsection (1) has effect without prejudice to the validity of any act done or property disposed of in accordance with the Debt Settlement Arrangement.

F84[(3) Where subsection (1) applies, the Insolvency Service shall, within 3 months after the date on which the Debt Settlement Arrangement would, but for that fact, have expired, remove from the Register of Debt Settlement Arrangements all information recorded in it in respect of the Debt Settlement Arrangement.]