The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

6.3.5.10 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: