The “Creditors Bankruptcy Petition” Solution

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Who would use Bankruptcy?

  • You would be a creditor and the Debtor who owes you money is an individual.
  • You would have exhausted all other avenues to try to collect the debt.
  • You would be owed in excess of $2,000 and have obtained judgement.

How does Bankruptcy help?

It puts control of the financial affairs of the recalcitrant debtor into the hands of a qualified Trustee. All the debtors divisible property vests in the Trustee who sells the assets and distributes the proceeds to creditors. The Trustee also has very broad powers of investigation to explore if assets have been diverted away from the debtor.

What to do if you are getting nowhere with a debtor?

Gather all your documentation together and go and see your solicitor.

If you have obtained judgement your solicitors will most likely serve the debtor with a Bankruptcy Notice which expires after 21 days. Then they can petition the Federal Court or Federal Magistrates Court for a sequestration order declaring the debtor Bankrupt.

At the time of petitioning the court your solicitor will need to obtain a consent to act from a Registered Trustee.

You should be aware that your legal costs to obtain the Bankruptcy Petition will be paid out of the assets of the debtor. Those costs come first.

Making Someone Bankrupt

The following links to the Australian Government’s Insolvency & Trustee Service of Australia website and the Australian Federal Court website have been provided to give you a more detailed guide to making someone Bankrupt and the forms required.

A Guide to Making Someone Bankrupt

Bankruptcy Forms and User Information

Why include Clout & Associates?

We are business recovery and insolvency specialists with our offices in Coffs Harbour and Kingscliff.

We operate in the region of your debtors. We can move quickly  which increases your return out of the debtors assets.

Call us for an obligation free totally confidential consultation.
We invite you to  click here for all our contact details.

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Morgan James Chubb

Chartered Accountant Registered and Official Liquidator Registered Trustee 38 years in Insolvency... Read more

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