Bankruptcy Legislation Amendment (Debt Agreements) Act 2007 (44 of 2007)

Schedule 2   Amendments commencing on 1 July 2007

Bankruptcy Act 1966

67   After section 185ZC

Insert:

185ZCA Court may order administrator to make good loss caused by breach of duty

(1) This section applies if, on application by:

(a) the Inspector-General; or

(b) a creditor who is or has been a party to a debt agreement;

the Court is satisfied that a person who is or has been an administrator of the debt agreement has committed a breach of duty in relation to the debt agreement.

(2) The Court may make any one or more of the following orders:

(a) an order directing the person to make good any loss that a creditor has sustained because of the person’s breach of duty;

(b) if the person is a registered debt agreement administrator - an order directing the Inspector-General to cancel the person’s registration as a debt agreement administrator;

(c) any other order that the Court considers just and equitable in the circumstances.

185ZCB Control of administrators by the Court

If a debt agreement is in force, the Court may, on the application of:

(a) the Inspector-General; or

(b) the debtor; or

(c) a creditor;

inquire into the conduct of the administrator, and may do either or both of the following:

(d) remove the administrator from office;

(e) make such order as it thinks proper.