A Bankruptcy Notice is issued at the request of a creditor who is owed money by an individual (person) debtor. It requires the debtor to pay to the creditor the amount claimed in the notice (must be more than $5,000) within 21 days. If the debtor does not pay the sum, they are committing an act of bankruptcy.
I’ve been served a Bankruptcy Notice. What do I do?
If you haven’t paid your debts and have now consequently been served with a Bankruptcy Notice, you have two options:
- Reach an Agreement with Your Creditor: You will have 21 days from the day you receive the notice to come to an agreement with your creditor. You may be able to discuss payment options and plans to pay off your debt.
- Don’t Reach an Agreement with Your Creditor: If you do not contact your creditor, or you do not meet their demands, you will be committing an act of bankruptcy. Your creditors may then have the option to make you bankrupt by order of the court.
Unsure how to come to an agreement with your creditors, or what the best step is in paying off your debt to avoid bankruptcy? Call CrossRoads Insolvency today on 02 8234 8865 to speak to one of our Bankruptcy experts.