Have you received a bankruptcy notice from the Australian Financial Security Authority (AFSA)? If you have you need to take immediate action otherwise you may become bankrupt. Before the Official Receiver at AFSA will issue a bankruptcy notice the creditor requesting that the notice to be issued must have firstly obtained a judgement from a local or district court and the debt must exceed $5000.
A bankruptcy notice is issued under the Bankruptcy Act, and if you ignore a bankruptcy notice, the creditor will be able to apply to court for a sequestration order (i.e. a bankruptcy order) to be made against you. You will have 28 days from receiving the notice to take appropriate action.
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 find out more about bankruptcy notices, contact Insolvency Services today on 1800 003 883. We offer free advice 7 days a week.