Issuing a bankruptcy notice to an individual

If the judgment debt is for a substantial amount and the debtor is an individual, the creditor is entitled to enter a Bankruptcy Notice against the debtor.

At present, a Bankruptcy Notice can be issued for any debt over $5,000. It is issued by Insolvency and Trustee Service Australia.

The costs and fees associated with issuing a Bankruptcy Notice are not added to the Bankruptcy Notice and are only claimed if a Creditors Petition is issued.

The Bankruptcy Notice has a copy of the judgment or order of the Court attached to it. The debtor has 21 days to comply with the Bankruptcy Notice by either paying the debt as outlined, or by entering into a payment arrangement that is satisfactory to the creditor.

Written by Mark Streeter

The Director of Streeterlaw, Mark has been practicing Law since 1994. He has attained his Masters of Law in 1999 and in 2006 was awarded his Specialist Accreditation in Commercial Litigation. Mark is a member of ARITA, a graduate of the AICD and a member of AICM. A member of STEP, Mark enjoys working in the area of Wills and Estates. In 2020 Mark is the Chair of STEP NSW.

Call us on 02 8197 0105 to book an appointment with Mark Streeter!