What happens to my debts?

What you need to know

Once a Summary Instalment Order (SIO) is made, creditors cannot begin or continue any steps to recover or enforce a debt included in the SIO.

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 SIO.  Provable debts are debts or liabilities owed at the date of entry which the creditor can prove through invoices and/or agreements.  The excluded debts listed above are not provable debts.

To enter into an SIO you must be unable to repay all debts immediately.  You must, however, be in a position to contribute toward payment in full or in part over the course of the SIO.  This is normally three years but may, under special circumstances, be extended to five years.