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BANKRUPTCY ACT 1966 - SECT 189 Control of property of a debtor who has given authority under section 188

BANKRUPTCY ACT 1966 - SECT 189

Control of property of a debtor who has given authority under section 188

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

  (1A)   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;

  (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.

  (1B)   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).

  (2)   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.

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