What is a Bankruptcy Notice?
When someone is no longer able to pay their debts as and when they fall due and payable, they have reached a stage where they have become insolvent.
This is when they are liable to be made bankrupt or they can file for bankruptcy themselves.
When a creditor seeks to have someone made bankrupt, under the Bankruptcy Act (Cth) in Australia, there is a very strict procedure which needs to be followed in order that the bankruptcy application is approved.
The first step in the process is to issue a Bankruptcy notice.
A Bankruptcy Notice is a an official court document in the form required under the Bankruptcy Act and Regulations which is stamped by the official receiver and then used as part of a creditor petition in order to seek a sequestration order against the defendant in the Bankruptcy.
The notice needs to be in the form prescribed in the Bankruptcy Regulations 1996 - Reg 4.
02 in Schedule 1.
It then needs to be stamped by the official receiver and served on the debtor.
In order that the bankruptcy notice can be completed, there needs to be judgment against the debtor from a court which can then be used as a way of verifying the existence of the debt.
A certificate of judgment from the court can be used to verify the existence of the debt.
Once the Bankruptcy notice has been served, the debtor has 21 days to comply with the notice and then if they do not, a creditor's petition can be filed and served which is the next step in the legal process towards Bankruptcy.
This is when they are liable to be made bankrupt or they can file for bankruptcy themselves.
When a creditor seeks to have someone made bankrupt, under the Bankruptcy Act (Cth) in Australia, there is a very strict procedure which needs to be followed in order that the bankruptcy application is approved.
The first step in the process is to issue a Bankruptcy notice.
A Bankruptcy Notice is a an official court document in the form required under the Bankruptcy Act and Regulations which is stamped by the official receiver and then used as part of a creditor petition in order to seek a sequestration order against the defendant in the Bankruptcy.
The notice needs to be in the form prescribed in the Bankruptcy Regulations 1996 - Reg 4.
02 in Schedule 1.
It then needs to be stamped by the official receiver and served on the debtor.
In order that the bankruptcy notice can be completed, there needs to be judgment against the debtor from a court which can then be used as a way of verifying the existence of the debt.
A certificate of judgment from the court can be used to verify the existence of the debt.
Once the Bankruptcy notice has been served, the debtor has 21 days to comply with the notice and then if they do not, a creditor's petition can be filed and served which is the next step in the legal process towards Bankruptcy.
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