Set aside bankruptcy notice

How to Set Aside a Bankruptcy Notice?

Depending on your personal circumstances, you may be able to comply with the requirements of a bankruptcy notice by applying to extend the compliance date and applying to set aside the bankruptcy notice.

When you have been served with a bankruptcy notice, you need to consider your financial position and options in complying with the requirements of the notice. If you fail to comply with the requirements of the notice within the time specified on the notice, then you may be unable to rely on those grounds later in insolvency proceedings.
If you believe that you are only temporarily unable to pay your debts as and when they fall due, you may consider making an application to extend the compliance date of the notice until you are in a position to pay your creditor. You will either need to convince your creditor or satisfy the Court that the extension will enable you to comply with the bankruptcy notice requirements.
If you believe that the underlying judgment relied upon by the creditor in the bankruptcy notice is invalid or wrong, you may consider applying to the appropriate Court to set aside the judgment. Setting aside the judgment successfully will satisfy the requirements of the bankruptcy notice. You may also want to consider seeking for the bankruptcy notice compliance deadline to be extended as set aside proceedings may take some time.
If you believe that the creditor owes you money which, when compared against the amount they claim against you, reduces the dollar amount below the statutory minimum, you may consider applying to set aside the bankruptcy notice on the grounds that you have a counter-claim against your creditor. You will need to satisfy the court through evidence.
There are a number of other grounds which you may wish to consider in applying to set aside a bankruptcy notice. Some of those grounds include:

a. There is a substantial defect in the bankruptcy notice.

b. The underlying judgment was stayed.

c. The bankruptcy notice was not served.

d. There is an error in the name of the debtor listed in the notice.

e. The notice is irregular.

f. You do not owe the judgment debt claimed in the notice.
This is a technical and complex area of law. If you need assistance in understanding your options and next steps after receiving a bankruptcy notice, we recommend that you send us an enquiry as soon as you can.

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