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DOI FAQ
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Frequently Asked Questions:
The most commonly asked questions about DOI is available on this page.
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If you need further information, an ITSA employee will be happy to assist you.
Please call us on 1300 364 785 or email us at info@itsa.gov.au.
Residents of some overseas countries may call us on our Toll Free Number or alternatively email us at info@itsa.gov.au.
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| 1. The Process Of Lodging A DOI |
| 1.1 Can anybody present a Declaration of Intention to present a debtor’s petition (DOI)? |
No. You cannot lodge a DOI if
- You have no relevant connection to Australia – if you don’t live in Australia or carry on a business in Australia;
- You are currently party to a Debt Agreement or Personal Insolvency Agreement or your property is currently under the control of a Controlling Trustee;
- You have been served with a Creditor’s Petition that has not been withdrawn, dismissed or lapsed;
- You have signed a Controlling Trustee Authority within the preceding 6 months; or
- The Official Receiver has accepted a DOI from you within the preceding 12 monthsNo. You cannot lodge a DOI if
- You have no relevant connection to Australia – if you don’t live in Australia or carry on
| 1.2.What do I gain by lodging a DOI? |
For a period of 21 days from the date the DOI is accepted by the Official Receiver (the “stay” period), unsecured creditors are prevented from taking action to enforce recovery of their debts. Eg the bailiff cannot seize your goods, and your employer cannot deduct money from your wages towards the payment of debts. NB The stay does not apply to debts arising from a maintenance agreement or order, HELP debts and fines and penalties imposed by a court.
| 1.3 What do I risk by lodging a DOI? |
Creditors may use the fact that you have lodged a DOI as a basis for an application to the Court to make you bankrupt
| 1.4 Can I appoint somebody to negotiate with my creditors on my behalf? |
Yes. You may ask somebody else (for example, a financial counsellor) to negotiate with your creditors during the 21-day ‘stay’ period. If, and only if, the person you nominate agrees to act on your behalf, then the details must be entered on page 1 of the DOI form and the Authorised Person must sign and date the form.
NB People who give financial advice, for example on debt consolidation, may need to be licensed as a provider of credit services with the Australian Securities and Investments Commission
| 1.5 What if I haven’t got all the information required in the forms? |
You are obliged to complete the statement of your affairs to the best of your ability, and there are penalties applicable if you knowingly provide false information. However it is acceptable, where precise information is not known, to enter your best estimate and note on the form “Estimated”
| 1.6 What if I need more time? |
It is not possible to extend the 21 day stay period
| 1.7 What should I do if I have forgotten to list one of my creditors on my DOI? |
You should immediately inform ITSA (on 1300 364 785). We will add that creditor to your DOI and send a copy of the report to that creditor. Depending on the significance of the undisclosed debt, ITSA may send an updated report to all your creditors.
| 2. What ITSA Does When A DOI Is Lodged |
| 2.1 Does ITSA tell all my creditors that I have lodged a DOI? |
Yes. ITSA will send a Notice (including a summary of your assets, debts and income) to all the creditors you disclose to us
| 2.2 Will the general public be told that I have lodged a DOI? |
No. Your DOI will not be entered on the National Personal Insolvency Index or advertised anywhere by ITSA
| 3.How I Am Affected By Lodging A DOI |
| 3.1 What should I do once I have lodged a DOI? |
You should seek assistance from a financial counsellor to see if it is possible to negotiate a way out of your financial difficulties without having to go bankrupt. Eg you may be able to agree on an extended repayment plan to pay off your debts. If you are unable to negotiate successfully, you should consider which of the formal arrangements under the Bankruptcy Act is most appropriate to your circumstances – Debt Agreement, Personal Insolvency Agreement or Bankruptcy
| 3.2 Does lodging a DOI stop my direct debits? |
No. If you wish to stop any direct debits you have put in place (and you should think carefully before doing this), you will have to contact your creditor with a specific request to cease the direct debit.
| 3.3 Will I receive notification when the stay period is over? |
No. But you will be notified when your DOI has been accepted and, included in that notification will be the time and date at which the stay period starts and finishes
| 3.4 If, after I present my DOI, I decide to go bankrupt, do I have to fill out more forms? |
Yes. You will need to complete a Debtor’s Petition and a new Statement of Affairs, and lodge them with the Official Receiver
| 3.5 If, after I present my DOI, I decide to go bankrupt, does the stay period under my DOI come off my period of bankruptcy? |
No. Subject to the trustee of your bankrupt estate lodging an objection to your discharge, you will be automatically discharged three years after you file your bankruptcy Statement of Affairs.
| 3.6 Will my credit rating be affected if I lodge a DOI? |
It is up to credit ratings agencies but it is possible that your credit rating will be affected
| 3.7 If I lodge a DOI, do I have to follow through and make myself bankrupt? |
No. But you may lodge your own Debtor’s Petition at any time after you have lodged a DOI
| 4. How My Creditors Are Affected By My Lodging A DOI |
| 4.1 What will my creditors do when they are told that I have lodged a DOI? |
Your creditors will have received information about your financial situation from ITSA. Based on that information, the creditors may agree to negotiate with you on a plan to assist you to get out of your financial difficulties.
| 4.2 Can my creditors seize my possessions after I have lodged a DOI? |
A secured creditor, for example a finance company that has financed the purchase of your car, may seize the goods over which they hold security if you are in default under your contract. But an unsecured creditor, for example a credit card company, may not seize your possessions to pay your debt during the stay period. If your possessions have been seized but not sold before you lodge your DOI, they cannot be sold; and if they have been sold but the money from the sale has not been paid to your creditors before you lodge your DOI, the money from the sale cannot be paid to your creditors
| 4.3 Can my employer deduct money from my wages and pay it to my creditors after I have lodged a DOI? |
No. During the stay period, your employer can not deduct money from your wages to pay your outstanding debts. If money has been deducted from your wages but not yet paid to the creditor before you lodge your DOI, the employer must not pay those funds to the creditor. At the end of the stay period, if you have not become bankrupt, deductions from your pay may resume, and funds held by your employer may be paid to the creditor
| 4.4 Can my creditors start legal action against me, or continue existing legal actions against me once I have lodged a DOI? |
Yes. Your creditors can still proceed to get judgement against you during the stay period, but they cannot seize your possessions or your income. Your creditors are able to commence bankruptcy proceedings against you, such as issuing a Bankruptcy Notice, during the stay period.
| 4.5 Can Centrelink continue to make deductions from my pension/unemployment benefits? |
No. But you should contact Centrelink to ensure they are aware that you have lodged a DOI and that you want deductions to be stopped
| 4.6 Can my creditors keep charging interest on my debts during the stay period? |
Yes. The DOI only prevents enforcement action. The debts still exist, interest continues to accrue and, to the extent possible, you should continue to honour any payment agreements you had made prior to lodging your DOI
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