If you have received a local or district court judgment for a debt which is more than $5,000, then it is possible that the creditor chasing you for payment will then apply to the Official Receiver at AFSA for a bankruptcy notice to be issued against you.
What is a bankruptcy notice?
A bankruptcy notice is a formal notice issued under the Bankruptcy Act, and if you ignore the notice, the creditor will be able to apply to court for a sequestration order (i.e. a bankruptcy order) to be made against you. This application to court is also known as a Creditors’ Petition. 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 it will issue a sequestration order and you will be declared bankrupt by the court.
What can I do if I 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 a Personal Insolvency Agreement.  If you would like to learn more about your options call us now.  Don’t delay if you want to avoid bankruptcy.
Our hotline is open 24 hours a day and will be answered by an experienced debt consultant.  Call us now on 1800 676 598.