If someone owes you money, you can apply to make them a bankrupt if the relevant conditions and requirements under Sections 307, 310, 311, 312 and 313 of the Insolvency, Restructuring and Dissolution Act (IRDA) are met.
Generally, you can file a bankruptcy application against an individual (or firm) if they satisfy both of these criteria:
This is the process to start proceedings against someone who owes you money. You are the creditor. The party who owes you money is the debtor.
You are filing a creditor's bankruptcy application.
Understand what bankruptcy means
Before you file an application, consider the consequences of and alternatives to bankruptcy. You may consider serving a statutory demand on the debtor as a way to show their inability to pay their debts.
File an application
Find out the documents, fees and process to file an application for a bankruptcy order.
You must attend a court hearing where a registrar will hear the case and make a decision. This may be a bankruptcy order or other orders.
Legislation associated with this topic include:
Yes. If you want to file a bankruptcy application against a firm, all of the following criteria must apply:
Refer to Sections 307, 310, 311, 312 and 313 of the Insolvency, Restructuring and Dissolution Act (IRDA), particularly Sections 307(1)(b) and 307(2) for more information.
Note: A firm and a company are different legal entities. For information on insolvency cases for companies, find out more about company winding up.