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What makes a debtor unsuitable for the Debt Repayment Scheme ("DRS")?
The debtor is unsuitable for the DRS when he fails to comply with the Official Assignee ("OA")'s instructions. By not complying with the OA's instructions (e.g. failure to submit or complete the documents required of him or pay the required fees, or if his liabilities exceed $150,000 at any stage of the period of assessment), he will be deemed unsuitable for the DRS and his case will be referred back to Court for the bankruptcy application against him to be heard again. In such an event, the Court, the debtor and the applicant-creditor will be informed of his unsuitability for the DRS.
Related questions
How will a debtor be eligible and suitable for the Debt Repayment Scheme ("DRS")?
How and when will the debtor be informed that he can commence the Debt Repayment Scheme ("DRS")?
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What happens if a debtor on Debt Repayment Scheme (“DRS”) defaults on his instalment payment?
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Can I opt out of the Debt Repayment Scheme ("DRS")?
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