What it means if someone who owes you money has lodged a temporary debt protection (TDP) form
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Temporary debt protection provides a six-month protection period for debtors. During this time, unsecured creditors, the bailiff or sheriff can’t take action to recover unsecured debts against the debtor themselves or their property. This gives the debtor time to consider all their options and discuss alternative arrangements with their creditors.
Lodging a TDP (formally known as a declaration of intention to present a debtor's petition) is an act of bankruptcy under s54A of the Bankruptcy Act 1966. The debtor is indicating they may be insolvent. The debtor is not automatically made bankrupt at the end of the six months. You can, however, use a TDP as the basis for a creditor’s petition to the court to make the debtor bankrupt. See Make someone bankrupt
If you have been notified of an accepted TDP but think the information about the debtor’s assets and income might be wrong, you should advise the Official Receiver in writing.
If the debtor files for bankruptcy, the information you provide will be given to their trustee for investigation.
If the debtor does not file for bankruptcy, you can pursue them to recover the money they owe you.