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Creditor's quick guide - debt agreements and unsecured debts
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The table below outlines common debt categories and how they are classified under the Bankruptcy Act 1966, together with information about what your rights as a creditor will be if the debt agreement proposal is accepted and you are bound by it.
Please note: The table relates to debts that were not incurred by fraud and that existed at the date the debt agreement proposal was/is filed with us.
| Type of Debt | Class | What are my rights? |
|---|---|---|
| Credit card, store card | Provable and extinguished | You have the right to vote. If the debt agreement proposal is accepted, you will be bound by it |
| Personal loan, business loan | Provable and extinguished | You have the right to vote. If the debt agreement proposal is accepted, you will be bound by it |
| Trade creditor (no retention of title) | Provable and extinguished | You have the right to vote. If the debt agreement proposal is accepted, you will be bound by it |
| Utilities (gas, electricity, phone (including mobile), internet, pay-TV) | Provable and extinguished | You have the right to vote. If the debt agreement proposal is accepted, you will be bound by it. The Bankruptcy Act does not force you to continue supplying the debtor |
| Unpaid employee entitlements (wages, leave) | Provable and extinguished | You have the right to vote. If the proposal is accepted, you will be bound by it. You may also wish to lodge a General Employee Entitlements and Redundancy Scheme (GEERS) claim (where the employer went bankrupt before 5 December 2012) or a Fair Entitlements Guarantee (FEG) claim (where the employer went bankrupt on or after 5 December 2012) |
| Legal fees / accounting fees | Provable and extinguished | You have the right to vote. If the debt agreement proposal is accepted, you will be bound by it. If you have a lien over work done, you can exercise that |
| Medical fees | Provable and extinguished | You have the right to vote. If the debt agreement proposal is accepted, you will be bound by it |
| Court-imposed fines | Not provable and not extinguished | Fines are still payable and the debtor can be pursued for payment |
| Court-ordered restitution amounts | Provable and extinguished if the amount was fixed before the date the debt agreement proposal was filed | You have the right to vote. If the debt agreement proposal is accepted, you will be bound by it |
| Pawn shop / pay day lender | Provable and extinguished | You have the right to vote. If the debt agreement proposal is accepted, you will be bound by it. You may not get back items you pawned, depending on their value |
| Child support / maintenance | Provable and not extinguished | You have the right to pursue the debtor for payment |
| Victims of crime | Not provable and not extinguished | You have the right to pursue the debtor for payment |
| Unpaid rent | Provable and extinguished | You have the right to vote. If the debt agreement proposal is accepted, you will be bound by it |
| Debts relating to property damaged when the debtor was a tenant | Provable and extinguished | You have the right to vote. If the debt agreement proposal is accepted, you will be bound by it |
| Overdrawn accounts | Provable and extinguished | You have the right to vote on the debt agreement proposal. If the proposal is accepted, you will be bound by it |
| Debts incurred after the date the proposal is/was filed with AFSA | Not provable and not extinguished | You have the right to pursue the debtor for payment |
| Debts incurred by fraud | If provable, are not extinguished | You have the right to pursue the debtor for payment after the debt agreement ends. |