188 Authority

The 188 Authority initiates the appointment of a Controlling Trustee. A 188 Authority is irrevocable and upon signing a 188 authority, you commit an act of bankruptcy, which means if your creditors do not accept your proposal your creditors will be able to reply upon that event and petition the court for your bankruptcy (in other words the application to court to make you bankrupt will be a little easier for your creditors). For that reason it is important that you put forward your best possible proposal. We will guide you through this process and assist you with formulating an affordable proposal.

Once you sign a 188 authority, your Controlling Trustee will have full control over your property. This control will continue until one of the following events occur:

• the creditors resolve that the property is no longer subject to the control of the Controlling Trustee; or
• a Personal Insolvency Agreement is executed by the debtor following the resolution of creditors; or
• a period of four (4) months has elapsed from the time of the authority being accepted; or
• the Court releases the debtor’s property; or
• the debtor becomes a bankrupt or dies.

Your Controlling Trustee will have power to deal with your property and will have the ability to:

• take immediate control of your property;
• make such enquiries and investigations in connection your affairs;
• carry on your business (if you a sole trader or in partnership); and
• deal with your property in way that will, in the opinion of your Controlling Trustee, be in the interests of creditors.

In addition, the Controlling Trustee will be required to:

• notify your creditors that a s188 authority has been signed;
• give information about the administration of your estate to any creditor who reasonably requests it;
• ensure that you discharge your duties under the Bankruptcy Act; and

give consideration to any offences you may have committed under the Bankruptcy Act and refer any offences to AFSA’s Bankruptcy Fraud area for prosecution.

Related Posts via Categories

• What is a Personal Insolvency Agreement?
• Does a Debt Agreement or a Personal Insolvency Agreement affect your credit rating?
• A Personal Insolvency Agreement was what we needed
• What is Personal Insolvency?
• Personal Insolvency Agreement
• Transactions to Defeat Creditors
• Registered Bankruptcy Trustee
• Preference Payments
• Controlling Trustee
• Implications of signing a 188 Authority

Tagged → Part X authority to act