A bankruptcy trustee is a person who is qualified and registered with the Australian Financial Security Authority (AFSA) to administer personal bankruptcies. Every person who becomes bankrupt will have a trustee to administer their bankruptcy.
What is the Role of a Trustee?
Your trustee stands between you and the creditors included in your bankruptcy. This means that you will not have to deal with your creditors after your bankruptcy begins, instead, your trustee will deal with your creditors. Another important role of the trustee is to ensure that you are complying with the bankruptcy legislation.
If you need to travel overseas, it is your trustee that will provide permission for you to travel. It is an offense to travel overseas without your trustee’s permission.
If you are wanting to retain the use of an unprotected asset, like your home or car during bankruptcy it is your trustee who will be able to assist you. If you are a high-income earner your trustee is the person to talk to about changes to your income that may affect your income contributions. Your trustee is your go-to person in relation to any questions you have about your bankruptcy.
Requests for Information
From time to time your trustee will ask you to provide information. It is important that you co-operate with your trustee’s requests for information. Your trustee has wide-ranging powers. Failure to comply with your trustee’s requests can lead to the extension of your bankruptcy, which is something neither you nor your trustee will want to happen.
Bound by Legislation
While each trustee will have their own personal approach to administering your bankruptcy, all trustees are bound by the Bankruptcy Act, 1966. This means that your trustee has guidelines that they must follow in the administration of your bankruptcy. Your trustee has obligations not only to you but also to your creditors. You can think of your trustee as the umpire who ensures that everyone plays by the rules.
For more information about what a bankruptcy trustee is and their role in your bankruptcy call us
on 1300 060 122 or email us at email@example.com.