When someone files a bankruptcy application against you

When you owe someone money, they are the creditor and you are the debtor.

If you owe your creditor at least $15,000 and you have not paid, they may apply to the General Division of the High Court to declare you a bankrupt.

You may receive the following documents:

  • A Statutory Demand demanding payment.
  • The creditor's bankruptcy application against you, along with the supporting affidavit.
You should not ignore these documents, as your creditor can still proceed with the bankruptcy application even if you do not respond or refuse to accept the documents.

Respond to a bankruptcy application step-by-step

This is the process to respond to a bankruptcy application made against you.

Before responding

Understand the considerations

Consider the consequences of and alternatives to bankruptcy before you proceed.

When responding

Respond to a statutory demand or bankruptcy application

If you do not respond to a statutory demand from a creditor, you may then receive a creditor's bankruptcy application and the supporting affidavit. Find out the ways you can respond at each stage.

After responding

Attend court

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.

After an order is made

File an application, if needed

You may file an appeal against a bankruptcy order that you are dissatisfied with. In some cases, you may apply to annul a bankruptcy order made against you.


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