Debt recovery: What is a Creditor’s Petition?8-March-2013 Commercial Disputes By admin
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.