Issuing a bankruptcy notice to an individual8-March-2013 Commercial Disputes By admin
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.