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.
Respond to a bankruptcy application step-by-step
This is the process to respond to a bankruptcy application made against you.
Understand the considerations
Consider the consequences of and alternatives to bankruptcy before you proceed.
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.
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.
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.
- The Insolvency, Restructuring and Dissolution Act, particularly Parts 13 to 22.
- The Insolvency, Restructuring and Dissolution (Personal Insolvency) Rules.
- The Insolvency, Restructuring and Dissolution (Debt Repayment Scheme) Regulations.
- The Insolvency, Restructuring and Dissolution (Voluntary Arrangements) Regulations.