Acts of Bankruptcy – s40(1)(g) Bankruptcy Notices

bankruptcy

How does a Bankruptcy Notices under the Bankruptcy Act 1966 work?

BANKRUPTCY ACT 1966 – SECT 40

Acts of bankruptcy

(1)  A debtor commits an act of bankruptcy in each of the following cases: ….

… (g)  if a creditor who has obtained against the debtor a final judgment or final order, being a judgment or order the execution of which has not been stayed, has served on the debtor in Australia or, by leave of the Court, elsewhere, a bankruptcy notice under this Act and the debtor does not:

                              (i)  where the notice was served in Australia–within the time fixed for compliance with the notice; or

                             (ii)  where the notice was served elsewhere–within the time specified by the order giving leave to effect the service;

                            comply with the requirements of the notice or satisfy the Court that he or she has a counter-claim, set-off or cross demand equal to or exceeding the amount of the judgment debt or sum payable under the final order, as the case may be, being a counter-claim, set-off or cross demand that he or she could not have set up in the action or proceeding in which the judgment or order was obtained

Source: http://classic.austlii.edu.au/au/legis/cth/consol_act/ba1966142/s40.html

Need finance?

Need finance for your business – big or small? Even if you need funds for a tax debt or other problem – we may be able to assist – click here for next steps.

More info on Bankruptcy?

What is a Bankruptcy Notices under the Bankruptcy Act 1966? The Act defines Bankruptcy Notices as follows:

BANKRUPTCY ACT 1966 – SECT 41

Bankruptcy notices

(1)  An Official Receiver may issue a bankruptcy notice on the application of a creditor who has obtained against a debtor:

                     (a)  a final judgment or final order that:

                              (i)  is of the kind described in paragraph 40(1)(g); and

                             (ii)  is for an amount of at least the statutory minimum; or

                     (b)  2 or more final judgments or final orders that:

                              (i)  are of the kind described in paragraph 40(1)(g); and

                             (ii)  taken together are for an amount of at least the statutory minimum

Do you have a problem with a Bankruptcy Notices? Have you been served a Bankruptcy Notices? Does someone owe you money and you’d like to issue a Bankruptcy Notices?

Any questions about Bankruptcy Notices? Live chat with us in the bottom right corner or call us on 1300-327123 till late, or alternatively complete the form below and we’ll reply to you promptly.

Watch our video tutorial, live chat with us in the bottom right corner or call us on 1300-327123 till late.

We offer a free first appointment to anyone who is in financial trouble and can assist and advise on any Bankruptcy Notices or a related matter. To book your free appointment – click here.

Mark J. Smith
Mark J. Smith

To learn more about Mark Smith, his training and expertise – click here to go to his profile page

Connect to Mark on LinkedIn.

Follow Mark on Twitter: https://twitter.com/mrmarkjsmith