What happens to my debts?

What you need to know

Once a No Asset Procedure (NAP) is entered, creditors cannot begin or continue any steps to recover or enforce a debt included in the NAP.

Certain debts are excluded by law. You must continue to pay any:

• Maintenance Orders under the Family Proceedings Act 1980
• Child support under the Child Support Act 1991
• Student loans
  
• Court fines and reparation.

Creditors may file ‘provable debt’ claims in an NAP.  Provable debts are debts or liabilities owed at the date of entry which the creditor can prove through invoices and/or agreements.  Legally excluded debts are not provable debts.

On discharge, you are released from your provable debts and you are not liable to repay any part of them, including any penalties and interest that may have accrued.  You receive a fresh start on the date of discharge.