The Member for Upper Hunter, Michael Johnsen, is free to contest National Party pre-selection this weekend, after settling a debt with relatives of his dead business partner.
They claimed Mr Johnsen owed a large amount of money to them, after the mortgage-broking business he had with Chris Walker was sold in 2015.
Filing for bankruptcy would mean he was not eligible to sit in parliament.
Mr Johnsen has told NBN News a figure has now been agreed on by all parties, and the matter is on track to be finalised in the coming days.
