7.3.5.10 When a Debt is Irrecoverable

Summary

A debt is taken to be irrecoverable at law if:

  • the debt cannot be recovered under the relevant debt recovery methods under the PPLAct, or
  • there is no proof of the debt capable of sustaining legal proceedings for its recovery, or
  • the debtor is discharged from bankruptcy or administration and the debt was incurred before the debtor became bankrupt or entered into administration, and was not incurred by fraud, or
  • the debtor has died leaving no estate or not enough funds in the debtor's estate to repay the debt.

Act reference: PPLAct section 193(3) When a debt is irrecoverable

Last reviewed: 6 February 2017