Before you make someone bankrupt, you must obtain a Court Judgment. The judgment must be for an amount greater than $5,000.
Once you have obtained a Court Judgment you can apply to the Australian Financial Security Authority (AFSA) for a Bankruptcy Notice. A Bankruptcy Notice is a final demand for payment of the Judgment or Order amount. The Judgment must be less than 6 years old. We can apply for a Bankruptcy Notice on your behalf.
Once the Bankruptcy Notice is issued you must serve it on the debtor, then the debtor will have 21 days to comply with the demand. Non-compliance in that period equates to an act of bankruptcy. The debtor commits an act of bankruptcy by failing to comply with the Bankruptcy Notice.
Once the debtor has committed an act of bankruptcy, you have 6 months to apply to the Federal Court or Federal Circuit Court to make the debtor bankrupt. This is called a Creditor’s Petition. If your application is successful, the Court will issue a Sequestration Order, making the debtor bankrupt. A trustee is appointed to the Bankrupt’s estate.
The job of the trustee in bankruptcy basically is to get in the debtor’s non-exempt property, manage the funds from the sale of the bankrupt’s assets and then pay expenses. After that happens, if there are any funds left, the trustee will distribute the balance to the creditors of the bankrupt estate.
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Proper experience in dealing with bankruptcy and debt recovery is essential. Aitken Whyte Lawyers are focused on results. Our litigation and disputes team will advise you on the proper course to take to recover a debt owed to you or your company, including obtaining a Judgement, Bankruptcy Notice against the debtor or applying to the Federal Court or Federal Circuit Court for a sequestration order by way of a creditor’s petition.
Aitken Whyte Lawyers can assist you with all bankruptcy and debt recovery matters.
Aitken Whyte Lawyers
11/8 Pikki Street,
Maroochydore Qld 4558
Ph: +617 5408 0655
Fax: +617 3211 9311