Have you been served with a Bankruptcy Notice?
If you owe somebody a debt over $5,000, then the creditor (the person or company you owe money too) may be able to serve you with a Bankruptcy Notice.
This is a formal demand for payment, generally based on a judgment or order in Court. The judgment or order must be for a sum over $5,000, and be no more than 6 years old.
How long do I have to comply with a Bankruptcy Notice?
A Bankruptcy Notice gives the individual 21 days to comply (pay the debt or make arrangements to the debtor’s satisfaction to pay the debt); from the date the notice is served. If they don’t, they have committed an ‘act of bankruptcy’.
This act of bankruptcy can be later relied upon by a person to seek orders in Court to declare you bankrupt.
Having trouble paying your debts?
Generally, if a person is having trouble paying their debts, the first step is to contact the creditor and seek assistance. Creditors are generally encouraged by consumer protection laws to be flexible when it comes to payment arrangements.
If it has proven to be impossible to come to an arrangement with the creditor or if you are unable to negotiate with the debtor (person who owes you money) then you should get in touch with us so we can advise you on the options available.
On the other hand, if you have been served with a bankruptcy Notice, it is imperative that you act fast, as you have 21 days to either comply with the bankruptcy notice, or apply to the Court to set aside the bankruptcy notice and/or extend the time for compliance with the bankruptcy notice.