The effect of approval of a DPP on creditors
The approval takes effect from midnight of the day before the day the notice appears in the register.
Once the DPP is approved, it is still incompetent for creditors to serve a charge for payment or to commence or execute any diligence to enforce any debt owed by the client.
Creditors cannot make an order granting warrant for sale of attached land or a satisfaction order.
Creditors cannot petition for the client’s sequestration.
Creditors must, on request by a continuing debt adviser to the client, or by the DAS administrator, provide a statement of all the client’s liabilities. Creditors must also notify any debt adviser or the DAS administrator of any liability where they have security against another person who is joint and severally liable.
Where a DPP is approved and the client has previously granted a trust deed which was not protected, the trust deed in effect ceases to exist. Therefore, it is unlikely that the creditor will receive a dividend from that trust deed agreement.