page of www.afsa.gov.au - 1300 364 7856(DP)(P)
DEBTORS PETITION PRESCRIBED INFORMATION
You must read the following information before signing the declaration.
Your Options to Deal Zith Unmanageable Debt
Talk to your creditors: some creditors could give you more time to pay, agree to renegotiate repayments or accept a smaller payment
to settle the debt. Some creditors have hardship provisions which you can use to vary the terms of your contract. You should call your
creditors and ask about their hardship provisions.
Lodge a declaration of intention to present a debtor’s petition: this stops your creditors, the bailiff or sheriff taking action to recover
unsecured debts for a period of 21 days. You could use that time to speak to your creditors, consider other options or seek advice.
Propose and enter a debt agreement (DA): a debt agreement is a legally binding arrangement between you and your creditors which
must be accepted by the majority of your creditors. The agreement is administered by a debt agreement administrator who will charge
a fee. Your debts, assets and income must be under certain limits* to propose a DA. You can offer to pay your creditors by instalments
or in a lump sum which may be less than the full amount of your debts. You will be released from debts covered by the agreement once
commercial credit record for 5 years, or longer in some circumstances. See the paragraph ‘Your ability to obtain credit and certain
services may be affected’ at the bottom of this page for additional information and obligations.
Propose and enter a personal insolvency agreement (PIA): a PIA is also a legally binding arrangement between you and your
creditors which must be accepted by a majority of your creditors. The PIA must be administered by a trustee who will charge a fee. There
are no debt, asset or income limits. You can offer to pay your creditors by instalments or in a lump sum which may be less than the full
amount of your debts. You will be released from debts covered by the agreement once you have completed all obligations and payments
Sources of further information: \RXFDQDVNIRUKHOSIURPD¿QDQFLDOFRXQVHOOLQJVHUYLFHUHJLVWHUHGWUXVWHHUHJLVWHUHGGHEWDJUHHPHQW
administrator, lawyer or an accountant. They will talk to you about your options and may speak to creditors on your behalf.
Consequences of Proceeding Zith a Petition Ior Bankruptcy
A trustee will administer your bankruptcy: you may ask a registered trustee to administer your bankruptcy. If you do not choose a
creditors can change your trustee. You must assist your trustee at all times. You must immediately notify your trustee in writing of any
Your assets may be sold: you will be able to keep ordinary household goods, tools (up to a certain value)* used to earn an income and
vehicles (up to a certain value)* but other assets - including your house - can be sold by your trustee. You cannot conceal, remove or
dispose of any property inside or outside Australia. If you do, you may be subject to criminal prosecution.
Your income, employment and business may be affected: if your income exceeds a set limit*, you may be required to make
contributions from your income. You cannot be a director of and/or manage a company. Some professional/licensing bodies may restrict
or prevent you from continuing in that trade or profession. You may not be able to hold certain public positions. If you are in business and
trade under a business name different to your own, you must tell everyone you deal with that you are bankrupt. If you don’t, you may be
subject to criminal prosecution.
You may not be released from all debts: you are released from most of your unsecured debts (eg credit cards, personal loans, store
cards) once you are discharged from bankruptcy. Some types of debts are not covered by bankruptcy (eg debts incurred by fraud,
on a house or a car) and you do not maintain repayments, that creditor can repossess and sell the asset; however the shortfall, if any,
will be covered by bankruptcy.
Your ability to travel overseas will be affected: you will not be able to travel overseas without the written permission of your trustee
required to pay an overseas travel application fee.
Your name will be on the public register (NPII) forever: it will also be recorded on a commercial credit record for 5 years, or
longer in some circumstances.
Your ability to obtain credit and certain services may be affected: \RXPD\¿QGLWKDUGWRERUURZPRQH\DQGEX\WKLQJVRQFUHGLW
provider that you are bankrupt. If you enter into a hire purchase agreement or a contract for the hiring or leasing of any goods whereby
by promising to supply goods or render services, you must tell the purchaser that you are bankrupt. If you don’t disclose your bankruptcy
in these circumstances, you may be liable to criminal prosecution.
I Acknowledge What I Kave Received and Read the Prescribed Information
Your signature Date (DD/MM/YYYY)