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7.16.3 No capacity to repay a debtor has no capacity to repay the debt and there is no reasonable prospect of the financial situation improving, a debt can be written off. All reasonable attempts at recovery should be made before write off is considered. Where there is no capacity to repay in the short term but recovery may be possible within a reasonable period, consideration should be given to deferring recovery. Refer to this manual's Section 7.17 Deferral.