It's a serious step to lodge a declaration of intention to present a debtor's petition (DOI). Learn about how the consequences will impact you if you proceed.
If you continue with a DOI your creditors are:
- notified by us of the 21 day protection period and receive a copy of your financial affairs.
- unable to enforce recovery of unsecured debts for 21 days - this includes garnishing[?] of wages and seizing property.
- able to start or continue legal action, but can't take enforcement action to recover the debt.
- able to continue recovery for a secured debt e.g. house or car.
Note: The Australian Tax Office can still garnish your wages if it has a statutory garnishee notice issued under s260-5 of Schedule 1 of the Taxation Administration Act 1953.
Other impacts of a DOI:
- You are committing an act of bankruptcy[?]. Creditors can use this to apply to court to make you bankrupt.
- After 21 days you are not automatically bankrupt and creditors can again resume trying to recover their debts.
- If you need to appear in court and are unsure if you should attend, contact the court. For more information about legal assistance see: Seek legal assistance.
A financial counsellor may assist you to make an informed decision.For more information see: Get help with debt decisions.