RESOLVING COMPLAINTS ABOUT TRUSTEES AND ADMINISTRATORS

Reproduced by express permission form the Commonwealth Government, Insolvency and Trustee Services Australia.

January 2004 Edition

About Bankruptcy Regulation

Bankruptcy Regulation is an independent branch of ITSA which reports directly to the Inspector-General in Bankruptcy.

It is responsible under the Bankruptcy Act for monitoring the standards of trustees and debt agreement administrators.

Its role includes, on behalf of the Inspector-General in Bankruptcy, dealing with complaints against trustees and administrators and dealing with requests for review of certain decisions made by trustees.

Who may complain to Bankruptcy Regulation?

Anyone may complain if they are concerned about an action taken by a:

Bankruptcy Regulation does not have specific authority to make enquiries regarding complaints about someone who provides advice in setting up a Debt Agreement, or in respect to voting on Debt Agreement proposals.

ITSA however does have a role in this area and may be able to assist you. Please contact your local ITSA office if you have a query or complaint concerning these aspects of the Debt Agreement process.

See the ITSA website www.itsa.gov.au for contact information

How to complain

Bankruptcy Regulation encourages you to first try and resolve your concerns with the trustee or administrator. If you have been dealing with an employee of the trustee or administrator, you should raise your concerns directly with your trustee or administrator.

If you are dissatisfied with the way they handle your complaint, or you feel unable to raise the issue with them, you are welcome to contact Bankruptcy Regulation.

Please send a full written explanation of your complaint to Bankruptcy Regulation along with copies of any relevant documents or letters.

See rear cover for contact information

Bankruptcy Regulation treats all complaints seriously and needs to understand the precise basis of your complaint and how you have tried to resolve it.

What does it cost?

There is no charge for a review undertaken by Bankruptcy Regulation.

ITSA (Insolvency and Trustee Service Australia) is a Commonwealth government agency. ITSA is the trustee when a registered trustee is not appointed.

See the Prescribed Information booklet for definitions of bankruptcy terms.

How is my complaint handled?

Bankruptcy Regulation will advise you in writing within 7 days of receiving your complaint whether it considers an investigation is warranted.

If your complaint is investigated, and the investigation is not finalized within 28 days, you will be kept informed of its progress.

Bankruptcy Regulation aims to finalise your complaint within 60 days of receiving it.

If your complaint is beyond Bankruptcy Regulation’s powers to investigate, or they cannot resolve it, they will advise you of your options, such as making an application to the Court.

More information is available in the pamphlet: Can I Appeal? Review and appeal of trustee and administrator decisions

How is my complaint investigated?

Bankruptcy Regulation may be able to resolve some complaints through discussions with the trustee or administrator, particularly if they are able to demonstrate to the trustee or administrator that they have incorrectly applied the law.

The basis of your complaint is usually explained to the trustee or administrator. If you wish to remain anonymous, or have any concerns about details being made available to them, please make this clear in your letter of complaint.

If the matter is investigated further, a written response is obtained from the trustee or administrator addressing the issues of your complaint and their file may be inspected.

If you wish, their written response may be made available to you; however, because of Privacy Act restrictions, this can only occur if the trustee or administrator agrees.

Report on the investigation

Bankruptcy Regulation will provide you and the trustee or administrator with a copy of any report it provides on your complaint, whether or not their response is made available to you.

Decisions which can be reviewed by Bankruptcy Regulation

In some instances Bankruptcy Regulation can review a trustee’s decision. Reviewable decisions are:

• filing of a notice of objection to discharge
• issuing an income contribution assessment
• rejecting a hardship application with respect to an income contribution assessment
• rejecting an application for early discharge (applies only to bankruptcies prior to 5 May 2003)

If your complaint relates to a decision of a trustee that is reviewable by Bankruptcy Regulation, you should follow the procedure set out in the pamphlet: Can I Appeal? Review and appeal of trustee and administrator decisions.

Bankruptcy Regulation does not have the authority to review any other decision made by a trustee, such as:

• selling an asset (eg house, property, stock, plant and equipment, motor vehicle etc.)
• admitting/rejecting a proof of debt.

What else can Bankruptcy Regulation help with?

If your complaint cannot be resolved by discussion with the trustee or administrator, and would involve direct intervention in the conduct of an administration, you will be advised of other options available to you under the Act. In such circumstances, your remedy may be to apply to the Court.

The Bankruptcy Act provides specific review mechanisms for complaints about trustee’s fees. A creditor or bankrupt dissatisfied with a registered trustee’s claim for fees and costs may request the Official Receiver to tax the trustee’s claim. The request must be made within 28 days of you becoming aware of the amount of the claim. You will be charged for this taxing service at a specified hourly rate. Under certain circumstances ITSA’s fees as a trustee can also be reduced.

More information is available in the pamphlet: Can I Appeal? Review and appeal of trustee and administrator decisions

If a complaint reveals a possible offence against the Bankruptcy Act, it will be referred to Bankruptcy Fraud Investigation for further examination.

Your complaint is permanently recorded even if Bankruptcy Regulation cannot resolve it. The record is kept as valuable feedback to assist in:

• determining the scope of Bankruptcy Regulation’s monitoring of trustees and administrators
• advising Government on bankruptcy policy issues

Further information about what you can expect from Bankruptcy Regulation and ITSA generally is available in the Client Service Charter

Where to contact us

ITSA website wwwitsa.gov.au

For more information please contact a Bankruptcy Regulation Office

Queensland and NT

Bankruptcy Regulation

PO Box 10443, Adelaide St

Brisbane QLD 4000

Ph: 07 3360 5425

Fax: 07 3360 5402

email: br.qld@itsa.gov.au

New South Wales and ACT

Bankruptcy Regulation

Level 8, 135 King St

SYDNEY NSW 2000

Ph: 02 8233 7857

Fax: 02 8233 7805

email: br.nsw@itsa.gov.au

Western Australia

Bankruptcy Regulation

GPO Box H536

Perth WA 6001

Ph: 08 9268 1204

Fax: 08 9268 1287

email: br.wa@itsa.gov.au

Victoria and Tasmania

Bankruptcy Regulation

Level 10, 360 Elizabeth St

MELBOURNE VIC 3000

Ph: 03 9272 4800

Fax: 03 9272 4940

email: br.vic@itsa.gov.au 

South Australia

Bankruptcy Regulation

GPO Box 2604

ADELAIDE SA 5001

Ph: 08 8112 4315

Fax: 08 8112 4304

email: br.sa@itsa.gov.au