BANKRUPTCY ACT 1966

PART X - PERSONAL INSOLVENCY AGREEMENTS  

Division 2 - Meeting of creditors and control of debtor ' s property  

SECTION 189   CONTROL OF PROPERTY OF A DEBTOR WHO HAS GIVEN AUTHORITY UNDER SECTION 188  

189(1)   [Subject to control]  

When an authority given by a debtor under section 188 becomes effective, the property of the debtor becomes subject to control under this Division.

189(1A)   [When control ends]  

The control continues until one of the following events happens:


(a) the creditors resolve at a meeting called under this Part that the property cease to be subject to control;


(b) the debtor and a trustee execute a personal insolvency agreement following a special resolution of creditors;


(c) (Repealed by No 80 of 2004)


(d) 4 months pass since the authority under section 188 became effective;


(e) the Court, under section 208 , releases the property from control;


(f) the debtor becomes a bankrupt;


(g) the debtor dies.

189(1B)   [Notification]  

The trustee must notify the Official Receiver in writing within 7 days after the trustee becomes aware that the control has ended because of an event specified in subsection (1A).

189(2)   [Limitations on debtor ' s rights]  

A debtor whose property is subject to control under this Division:


(a) shall not remove, dispose of or deal with any of his or her property except with the consent of the controlling trustee;


(b) shall furnish to the controlling trustee such information with respect to any of the debtor ' s examinable affairs as the controlling trustee requires; and


(c) shall comply with any direction given to him or her by the controlling trustee with respect to his or her property or affairs.

Penalty: Imprisonment for 12 months.

189(3)   [Effect of contravention of subsec (2)]  

A disposal of, or dealing with, property by a debtor in contravention of subsection (2) is not invalid by reason only of that contravention.




This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.