What is an Act of Bankruptcy?
By Administrator 21 January, 2014
An “Act of Bankruptcy” is an act which a person commits which a creditor can then reply upon to approach the Court for a bankruptcy order to be issued.
There are many types of situations where someone can commit an “Act of Bankruptcy” but the most common types relied upon by creditors in bankruptcy applications are:
- Failing to comply with a Bankruptcy Notice;
- Leaving Australia with the intent to defeat or delay your creditors;
- Keeping house with the intent to defeat or delay your creditors;
- Departing your usual house or place of business with the intent to defeat or delay your creditors;
- Sending your creditors a notice that you intent to suspend or have suspended payment;
- Signing a proposal for a debt agreement;
- Signing a 188 authority to initiate a personal insolvency agreement.
If you commit an Act of Bankruptcy, a creditor who is owed $5,000 or more can petition the Court to make you bankrupt.
If you are concerned about committing an Act of Bankruptcy, call the bankruptcy experts at Debt Free Australia on 1800 676 598. Our bankruptcy consultants have years of experience and will be able to give you accurate and impartial advice on all aspects of bankruptcy and options to avoid bankruptcy.