Creditor's petition in bankruptcy preparation
A creditor's petition must follow the bankruptcy notice and act of bankruptcy closely. This checklist walks through the steps.
This is a 12-step checklist for preparing a creditor's petition in bankruptcy. It covers the bankruptcy notice, act of bankruptcy, petition and hearing.
The checklist
Confirm the judgment debt
You need a final judgment of at least the statutory minimum. Check the amount against the current threshold.
Issue a bankruptcy notice
Prepare and issue a bankruptcy notice through AFSA against the judgment debt.
Serve the bankruptcy notice
Serve personally or by alternative means with leave of the court.
Diary the 21-day period
The debtor has 21 days to comply, apply to set aside, or commit an act of bankruptcy.
Confirm act of bankruptcy
Failure to comply with a bankruptcy notice is an act of bankruptcy. Identify the exact date.
Prepare the creditor's petition
Prepare the petition and supporting affidavit of debt in the approved form.
Prepare the affidavit of search
Affidavit verifying the National Personal Insolvency Index search.
File the petition
File the petition with the Federal Court or Federal Circuit and Family Court.
Serve the petition
Serve personally on the debtor in time for the hearing.
Prepare affidavit of service
File an affidavit of service before the hearing.
Prepare affidavit of continuing debt
At the hearing, an affidavit of debt and continuing debt is required.
Attend the hearing and seek a sequestration order
Attend and seek a sequestration order. If granted, AFSA administers the estate.
When this checklist applies
Use this checklist when a personal debtor has failed to satisfy a judgment debt and bankruptcy is the appropriate next step.
Common pitfalls
- Debt below the statutory minimum
- Defective bankruptcy notice
- Act of bankruptcy misidentified
- Affidavit of continuing debt missing at hearing
- Petition not served personally
Run this checklist on a real matter
Quillio drafts bankruptcy notices, petitions and supporting affidavits in current Commonwealth format. See /practice-areas/commercial-lawyers.
This checklist is a general guide. Adapt for debtor's petitions and personal insolvency agreements.
Use this checklist on your matter.
Quillio can run this checklist on a specific NSW conveyancing matter — confirm each item, calculate adjustments, and generate the supporting documents. The free trial requires no credit card.
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