If someone owes you (the creditor) $5000 or more, you can apply online to the Official Receiver for a bankruptcy notice. This bankruptcy notice requires the debtor to pay the debt within 21 days. If they fail to pay the debt, they have committed an act of bankruptcy.
If you fail to deal with a bankruptcy notice in the appropriate way the creditor can apply to court for a Creditors’ Petition to be issued. Once a Creditors’ Petition has been filed in court it will allocate a hearing date. If the debt remains unpaid at the time of the hearing the court will issue a sequestration order and you will become bankrupt.
If you have been served with a bankruptcy notice, you may be able to stop a creditor from forcing you into bankruptcy by proposing a Debt Agreement or Personal Insolvency Agreement. To find out more about bankruptcy notices, contact Insolvency Services today on 1800 003 883. We offer free advice 7 days a week.