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COMMONWEALTH OF AUSTRALIA

Bankruptcy Act 1966

Bankruptcy (Registration and Cancellation of Registration of a Debt Agreement Administrator) Guidelines 2020

I, Hamish McCormick, Inspector-General in Bankruptcy, acting under section 186Q of the Bankruptcy Act 1966, repeal the Guidelines Relating to the Registration and Cancellation of a Registered Debt Agreement Administrator (which commenced on 27 June 2019) and make the attached legislative instrument as guidelines for the purposes of sub-sections 186C(6), 186K(7) and 186L(7) of that Act.

These Guidelines commence on 1 January 2021.

Dated this 17 December 2020

HAMISH MCCORMICK

Inspector-General in Bankruptcy

Bankruptcy (Registration and Cancellation of Registration of a Debt Agreement Administrator) Guidelines 2020

1. Introduction

2. Overview of certification and specific duties of administrators

3. Registration

Who needs to become registered?

Who does not need to become registered?

Who can apply
Individuals
Companies
Partnerships
Fit and proper assessment
Insurance – corporate and individual
Insurance – adequate and appropriate

Assessment of ability to satisfactorily perform the duties of an administrator
(a) Duties to ensure certificate is correct and properly administer the agreement
(c) Ensure creditors and the Official Receiver are informed about default
(d) Taking fees and expenses
(e) Handling and properly accounting for money
(f) Inform the Official Receiver within 5 days from the end of the agreement
(g) Consider whether offences under the Act have occurred and refer any evidence of such offences to the Inspector-General

Conditional registration

Industry wide conditions

Mandatory qualifications

4. Cancellation of registration

Involuntary cancellation of an individual's or company's registration
Grounds for cancellation

Voluntary cancellation of registration

Ineligibility of an unregistered administrator

Matters considered by the Inspector-General
Categories of breaches
Category A breaches
Category B breaches
Category C breaches

1. Introduction

1.1 These Guidelines[1] provide information on the factors that will be considered by the Inspector-General in deciding whether to approve an application for registration as a debt agreement administrator and whether to cancel an existing registration on a voluntary or involuntary basis under the Bankruptcy Act 1966 (the Act). They incorporate changes contained in the Bankruptcy Amendment (Debt Agreement Reform) Act 2018 (the Debt Agreement Reform Act). The majority of the changes contained in the Debt Agreement Reform Act commenced on 27 June 2019. [2]

2. Overview of certification and specific duties of administrators

2.1 Pursuant to sub-section 185C(2D) of the Act, at the time the debt agreement proposal is lodged with the Official Receiver, an administrator is required to sign a certificate outlining that:

       * they have consented to deal with the identified property in the way specified in the proposal

       * the debtor has been given the information prescribed by the Bankruptcy Regulations 1966 (the Regulations), including about alternative means of dealing with financial difficulty

       * having regard to