Completing a Proof of Debt

Form	Title
Form 8	Proof of Debt		PDF
Paragraph 185EA(2)(b) Paragraph 185MA(2)(b) Paragraph 185PA(2)(b)	Claim and Vote Form	Word	PDF

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Instructions

1. When to lodge a Proof of Debt (POD)
A trustee of a Personal Insolvency Agreement (PIA) or bankruptcy will request you to lodge a POD where there are funds in the estate to distribute.

A dividend will only be paid to those creditors whose proof of debt has been admitted by the trustee. Correct completion of Proofs of Debt will prevent delays in distribution of funds to the creditors.

Return the completed POD to the trustee within the prescribed time as a dividend may be paid without further notice to you.

Note: The trustee may require you to verify the matters contained in your POD by way of a Statutory Declaration. If such a request is made by the trustee and you fail to provide the Statutory Declaration, then the trustee can disregard your POD.

Lodging a false proof of debt is an offence, which is punishable by imprisonment for 3 years: S263 (1)(d)

2. Which debts are provable?
Not all debts are provable, for example:

Debts incurred after the date of bankruptcy
Interest that has accrued after the date of bankruptcy
Debts owed by the bankrupt/debtor’s company if they are not supported by a personal guarantee

Please do not include these in your claim. Your claim may be rejected for these amounts and result in delaying the payment of the dividend. Further information on provable debts is available from the itsa website www.itsa.gov.au, ITSA or the trustee.

3. Instructions on completion of the POD
It is your responsibility to prove to the trustee that you are owed the debt.

Answer all questions on the form
Calculate interest to the date of bankruptcy; or the date the PIA was accepted by creditors.
Total the amounts and check that your calculations are correct
Sign and date the POD
Attach documentary evidence of your claim. Evidence may include copies of:
- invoices
- statements
- delivery dockets.
- relevant contracts
- personal guarantees given by bankrupt/ debtors
- loan contracts
- Judgments

4. Separate, Joint, and Joint & Several Creditors
If two or more persons have become bankrupt or entered into a PIA together, creditors may have a claim against

(a) only one of them,

(b) all of them jointly only, or

It is important that you indicate which situation applies to you at Q2 so that the trustee is able to admit your claim in the correct estate. This information is generally available from your loan or credit contract document.

Information for specific Creditors

5. Secured Creditors
Secured creditors must answer Q4. A secured creditor can prove for all or part of his secured debt. Where a secured creditor surrenders their security to the trustee, a claim may be made for the whole of the debt. Where a secured creditor sells their security, a claim may be made for the shortfall or conversely the surplus must be given to the trustee. Where a claim is made for the shortfall from the sale of an asset, an accounting for the sale must be attached to the POD. Where the property has not been sold, but a shortfall is anticipated in an eventual sale, the secured creditor can claim for the estimated shortfall amount.

6. Judgment Creditors
The trustee may look behind a Judgment to obtain further evidence of a debt. If you have obtained a Judgment please provide details at Q5. Costs awarded in a Judgment obtained prior to bankruptcy may be included.

7. Business/trade creditors
Disclose your ABN at Q3 if you are a business creditor. The trustee may be required to withhold tax on any dividend where the business creditor does not disclose its ABN. If the goods or services you supplied was for the bankrupt/debtor’s business then you are also required to show the GST amount (if any) that is included in your debt at Q6

8. Other
An executor of a deceased creditor's estate may prove in the bankruptcy in place of the deceased creditor.

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