Debt recovery: What is a Creditor’s Petition?

A Creditor’s Petition is the formal document filed in the Federal Court or Federal Magistrates Court seeking orders for the bankruptcy of the judgment debtor.

The fee for a company to file a Creditor’s Petition is $2,915. For an individual, the fee is $1,215.

Once the Creditor’s Petition is filed and served personally on the judgment debtor, a Court hearing date is allocated.

At the hearing, the creditor must prove the facts relating to the act of bankruptcy and Creditor’s Petition and also that the debt remains outstanding. If the Court is satisfied with the creditor’s evidence, the Court will make a Sequestration Order, appointing a Trustee to attend to the affairs of the debtor.

The period of bankruptcy is three years from the date of the filing of the Statement of Affairs, which is a document the bankrupt party is required to file pursuant to the Bankruptcy Act, which sets out details of his or her assets and liabilities.

Written by Jamal Bakalian

After studying a double degree in Law and International & Global Studies at Sydney University, Jamal completed her GDLP at the College of Law. She is currently undertaking her Masters of Law (majoring in Commercial Litigation). Jamal has been practicing Law for 5 years. With a passion for resolving disputes, Jamal is a valuable member of the Commercial Litigation team at Streeterlaw.

Call us on 02 8197 0105 to book an appointment with Jamal Bakalian!