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10.3.2 Action to be taken where a Client has become a Bankrupt or where S45A approval is sought by a Creditor


When information is received that a client has become bankrupt, before advice is given to the Bankrupt, Official Receiver or Trustee in Bankruptcy as to whether the Secretary will exercise his powers under s.45A, the Official Receiver or Trustee will be requested to submit a statement of assets and liabilities and, in the case of sequestration proceedings, a report on the Bankrupt's conduct and affairs.

Where, after consideration of the statement of assets and liabilities and report on the Bankrupt's conduct and affairs, the Delegate is satisfied that there are no exceptional circumstances, the parties involved may be advised that the Secretary does not propose to exercise his powers under s.45A. It is important at this stage to notify both our client and Westpac that the provisions of Section 45A will no longer apply once the DSH loan is discharged. [Administrative Framework and Decision Making GO 10.3.3 below also refers.]

The same general principles are to apply when unsecured creditors are seeking approval under s.45A to complete recovery action.

In any case where the Delegate considers that there are grounds for exercising the powers under s.45A, the statement of assets and liabilities and report on the client's conduct and affairs will be submitted to the Administration Manager (DHOAS)for decision together with the following particulars:

  • location of property;
  • amount of assistance (including additional assistance);
  • estimated value of property;
  • existing liability;
  • whether the client or his/her dependants are in occupation;
  • the manner in which the client has complied with the loan conditions              and details of any arrears of repayments or rates;
  • general comments by Delegate and/or NPC Manager.