A Controlling Trustee is a fully qualified insolvency specialist who would typically specialises in the area of personal insolvency. Only a Registered Trustee or Solicitor can act as a Controlling Trustee.
The role of the Controlling Trustee is to investigate the affairs of the debtor, prepare a report to creditors and hold a meeting of creditors within 25 working days of being appointed. Contained within the report to creditors will be debtor’s proposal for a Personal Insolvency Agreement and the The Controlling Trustee must form an opinion and make a recommendation on the debtor’s proposal. Typically for a Controlling Trustee to support and recommend the debtor’s proposal, it must offer a better return to creditors compared to bankruptcy. Unless the debtor’s proposal offers a better return to creditors, it is most likely that creditors will not vote in favour of the proposal.
The Controlling Trustee only acts for 25 working days and within this period the debtor will not be able to deal with their assets in any way.
A Controlling Trustee is appointed by the debtor upon the execution of a 188 Authority. Please carefully read the implications of singing a 188 authority very carefully as once it is signed it cannot be revoked.
You should be aware that signing the 188 Authority is irrevocable and once you sign a 188 authority, your Controlling Trustee will have full control over your property. Call Debt Free today to find out more about appointing a controlling trustee – our initial phone consultation is free and all information disclosed is entirely confidential.
If the creditors vote in favour of the debtor’s proposal, typically the Controlling Trustee will be appointed as the Trustee to supervise the Personal Insolvency Agreement. The time period to supervise the Personal Insolvency Agreement will depend on the debtor’s proposal and the time it takes for the debtor to fully comply with all of their obligations under the Personal Insolvency Agreement.
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