Bankrupt a person who owes you money and is unable to pay.

Bankrupt the individual debtor who owes you money and will not pay.

When an individual debtor refuses to pay a judgment debt and ordinary enforcement has failed, a creditor’s petition under the Bankruptcy Act 1966 (Cth) is often the most powerful tool available. The process is technical and sequential: a bankruptcy notice must first be served, an act of bankruptcy must occur, and the petition must be properly filed and served. When executed correctly, it compels the appointment of a trustee who takes control of the debtor’s assets and realises them for the benefit of creditors, including you. We manage the entire process to ensure nothing goes wrong at a procedural level.

What is a creditor's petition in personal bankruptcy and how does it work?

A creditor’s petition is a formal application to the Federal Court or the Federal Circuit and Family Court of Australia to have a debtor declared bankrupt under the Bankruptcy Act 1966 (Cth). It is available to a creditor who holds a provable debt of at least $10,000 and has established an act of bankruptcy, most commonly the debtor’s failure to comply with a bankruptcy notice served on them. Once a sequestration order is made, a trustee in bankruptcy is appointed to gather and realise the debtor’s assets and distribute proceeds to creditors. The process is one of the most effective mechanisms available to creditors dealing with individual debtors who have realisable assets but refuse or are unable to pay.

What is the minimum debt to file a creditor's petition?

To file a creditor’s petition under the Bankruptcy Act 1966 (Cth), you must hold a provable debt of at least $10,000. The debt must be a liquidated sum, meaning it is fixed and certain, such as a judgment debt or an undisputed commercial debt. If your debt is below this threshold, other enforcement mechanisms may be more appropriate.

What is a bankruptcy notice?

A bankruptcy notice is a formal demand served on a debtor requiring payment of a judgment debt within 21 days. If the debtor fails to comply, does not apply to have the notice set aside, and does not have a counterclaim that reduces the debt below the threshold, they have committed an act of bankruptcy, which grounds the creditor’s petition. The notice must comply with strict technical requirements under the Bankruptcy Act 1966 (Cth) and the associated rules.

Can the debtor defend the creditor's petition?

Yes. A debtor can apply to have the bankruptcy notice set aside on various grounds, including that the debt is disputed or that they have a counterclaim or set-off. They can also oppose the petition at the hearing, arguing for example that the debt is disputed, that they are able to pay, or that it is not in the interests of creditors to make a sequestration order. We anticipate these defences and prepare accordingly.

Will the debtor lose all their assets in bankruptcy?

Bankruptcy does not strip the debtor of everything. Certain assets are exempt under the Bankruptcy Act 1966 (Cth), including household property up to a set threshold, superannuation, tools of trade up to a value limit, and a vehicle up to a prescribed value. The trustee realises non-exempt assets and distributes proceeds to creditors. The trustee will also investigate transfers made by the debtor before bankruptcy and may recover them if they constitute voidable transactions.

A powerful enforcement mechanism.

End the debtor's evasion.

Participate in the recovery.

Find out whether a creditor's petition is right for your situation.

The process only works if your debt and the debtor’s circumstances qualify. It is worth confirming this before investing in the process. We can assess quickly and tell you whether proceeding is likely to be worthwhile.

One procedural error can derail the entire proceeding.

You hold a judgment against an individual who refuses to pay and appears to have assets. Ordinary enforcement, including garnishee orders and writs of execution, has failed or is unavailable. You need a mechanism that goes beyond enforcement and gives you access to the debtor’s full asset pool through a court-appointed trustee.

We will advise on whether your debt qualifies for a creditor's petition and whether the debtor has assets worth pursuing.
We will prepare and serve the bankruptcy notice and monitor the debtor's response.
We will file the creditor's petition in the appropriate court and manage the hearing process.
We will advise on your rights as a creditor in the bankruptcy after a sequestration order is made.
We will assist with proof of debt lodgement and advise on recovery throughout the bankruptcy process.

You have a judgment, the debtor has assets, and they still will not pay.

You went through the cost and effort of obtaining a judgment against an individual debtor. Attempts to enforce that judgment through garnishee orders and writs on property have produced nothing or not enough. You know the debtor owns property or has other assets, but they are structured in a way that makes direct enforcement difficult. Bankruptcy would cut through that. You need a process that puts a trustee in charge of the debtor’s affairs and gives creditors access to the full asset pool.

What's included in your creditor's petition service

Creditor petition eligibility and strategy advice.
Bankruptcy notice preparation and service.
Creditor's petition filing and court hearing management.
Trustee appointment and creditor rights advice.
Proof of debt and dividend process assistance.

What happens when the process has a technical defect.

Creditor’s petitions are procedurally demanding: a bankruptcy notice that is technically defective can be set aside, a petition filed in the wrong court is invalid, and a petition served incorrectly gives the debtor grounds to dismiss proceedings before they start. Debtors facing bankruptcy are often advised how to identify technical defences, and every failed attempt is expensive and gives the debtor more time to dissipate or restructure assets. The process needs to be executed correctly the first time. There is rarely a cost-free second attempt.

Here is how we get the sequestration order you need.

We start with an assessment of whether a creditor’s petition is the right tool, including whether your debt qualifies, whether the debtor has assets worth pursuing, and what the realistic recovery looks like. If it is the right path, we prepare the bankruptcy notice to the technical standard required by the Act, manage service and the timeframes for the act of bankruptcy, and file the petition in the correct court with the correct supporting material. If the debtor contests the proceedings, we respond to any application to set aside the notice or dismiss the petition. Our goal is a sequestration order that survives challenge and puts a trustee in place to realise assets for your benefit.

How we manage the petition from start to finish.

Every step done right, the first time.

Check eligibility and prospects.

We confirm your debt qualifies, assess whether the debtor has assets that make a petition worthwhile, and advise on the likely cost and return before you commit.

Serve the notice and file the petition.

We prepare and serve the bankruptcy notice, monitor the act of bankruptcy, and file the creditor's petition, ensuring every procedural step is airtight.

Pursue the recovery.

Once a sequestration order is made, we lodge your proof of debt, monitor the trustee's progress, and advise on your rights throughout the bankruptcy process.

Experienced bankruptcy lawyers who know how to execute the process correctly.

We know how frustrating it is to hold a judgment and still not be paid, and to feel like the legal system has already given you everything it can without producing a result. Our lawyers have managed creditor’s petition proceedings from bankruptcy notice through to sequestration order and beyond, and we know how important it is to get every procedural step right. A technical defect in a bankruptcy notice or petition can derail the process entirely. We eliminate that risk.

We understand you want to know the cost, before we get started.

We will map out our process, from beginning to end, so you know what the journey will look like before you get started.

We will provide you with a clear and detailed Work Proposal covering each step along the way.

Our fair fees are all-inclusive. No hidden costs for telephone calls, emails, photocopying, couriers, or coffee.

Our great lawyer guarantee

We want to be part of your team over the long term. We achieve this by adhering to these core principles:

Take the time

We listen carefully to understand what you want to achieve. Then we thoroughly explain our advice and step you through the documents. You can be sure you know the full consequences.

Share our knowledge

We will pass on as much knowledge as we can, so you can make your own informed decisions. We want to make you truly independent.

Stick to our knitting

We only do what we're good at. You can be confident that we know what we're doing and don't pass on the cost of our learning.

Work as one team

Someone will always be available to answer your questions, or point you in the right direction. You will also benefit from a range of perspectives and experience.

Fair pricing

For advice and documents, we provide a fixed or capped quote so you don't take price risk. If you're in a dispute, we map out the process and costs so you know what to expect.

It's your show

We're not in this for our egos. We're in it for a front row seat to witness your success.

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