When a Debtor Has Capacity to Repay by Deductions etc.


If a debt could be recovered by deduction or by setting off another payment to which the debtor is entitled under another Act, then the debtor is considered to have the capacity to repay the debt, unless recovery by those means would cause the person severe financial hardship (

Act reference: PPLAct sections 193(4) to (5) When a debtor has capacity to repay by deductions etc.

Last reviewed: 6 February 2017