What are the consequences of a DOI?

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.

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