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, at which time the control is transferred to the trustee who will supervise the Personal Insolvency Agreement; or
- a period of four (4) months has elapsed from the time of the authority being accepted; or
- the Court releases the debtors 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 ITSA’s Bankruptcy Fraud area for prosecution.
