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    If I have a prescribed account, do I still need to include it in the application?

    Yes. The court application must disclose every account that formed part of the debt review, including any account that has prescribed.

    A debt prescribes when no payment has been made for a continuous period of three years and the creditor has not issued summons or taken judgment. The application sets out the prescription defence and the court takes it into account when assessing affordability.

    Disclosing prescribed accounts upfront protects you: creditors cannot later argue the application was misleading.

    Expert Answer

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