How to File a Creditor's Petition

Australian debtors sometimes file for bankruptcy if they are overwhelmed by debt. Bankruptcy protects the debtor from further collection action and gives him a chance to start over. Creditors may force a debtor into bankruptcy if he owes money and refuses to pay it, especially after receiving a bankruptcy notice from the creditor.

Instructions

1

Search the National Personal Insolvency Index for the debtor's name. You can access a list of companies that will perform this search for you on the website of the Insolvency and Trustee Service of Australia. Each of these services charges a fee for aiding you in the search. If your debtor's name comes up in the search, he has already been declared bankrupt and you cannot file a petition against him.

2

Sue the debtor. If the court enters a judgment in your favor, ask it to attach a bankruptcy order to the judgment.

3

Send a copy of the bankruptcy order to the debtor. Wait 21 days for her to comply with the order. If she does not do so, you may file a creditor's petition against her.

4

Obtain a creditor's petition and associated affidavits from the bankruptcy court. Fill out the bankruptcy petition. Provide your name and address, as well as the debtor's. List how much money the debtor owes you, and indicate whether the debt is secured or unsecured. If the debt is secured, list the amount and type of security. Sign and date the petition.

5

Complete the affidavit. Sign it in front of a notary. If someone else witnessed the debtor's failure to comply with the bankruptcy notice, that person should complete and sign the affidavit.

6

Make three copies of the petition and affidavit.

7

Bring the original and two copies of the petition and affidavit to the court. Pay any application fee your district requires. The clerk will stamp the petition with the date and time of the hearing.

8

Make copies of the filed petition. Send a copy of the petition and affidavit with the hearing time and date to the debtor. Give a copy to the National Receiver of Bankruptcy.

9

Attend the hearing. Bring the bankruptcy notice and any other proof that the debtor defaulted on his debt to the hearing. Give this evidence to the judge when asked. If the judge agrees that the debtor committed an act of bankruptcy, he will accept your petition and declare the debtor bankrupt.