Creditor’s Petition – Tempora Legal

What is a Creditor's Petition?

If you have been served with a creditor’s petition in the Federal Circuit Court of Australia then your insolvency proceedings are substantially advanced and your options to oppose the petition may be limited.

A creditor may bring a creditor’s petition for a number of reasons, more commonly as a result of a person’s failure to comply with the terms of a bankruptcy notice. If you have been served with a creditor’s petition for any other reason, we recommend contacting us as soon as you can.
If you fail to comply with the requirements of the bankruptcy notice within the time for compliance, then the creditor may file an application known as a creditor’s petition with the Federal Circuit Court of Australia seeking sequestration orders against you. Sequestration orders declare you bankrupt.
When a creditor’s petition is filed, the court will list the matter down for a hearing. Therefore, it is very important that you begin taking action immediately after receiving a creditor’s petition. If you intend to oppose the petition, there are a number of procedural requirements to be met.
There are a number of ways you can oppose the petition. However, you cannot oppose the petition on any grounds that you otherwise had the opportunity to raise in complying with the requirements of the bankruptcy notice.
Therefore, the most common ground to oppose a creditor’s petition is on the basis that you are able to pay your debts or are only temporarily unable to do so. Simply put, you may oppose the petition on the basis that you are solvent.
If you have been served with a creditor’s petition, we recommend you contact us at the earliest convenience so that we can promptly discuss with you the risks and options for you to consider in opposing a creditor’s petition. We are experienced insolvency lawyers who can represent you in insolvency proceedings involving creditor’s petitions.
We may also be able to advise you on other avenues that may be appropriate for you to take. Given the complexities in insolvency law, we will require specific information about you and your circumstances. Please contact us as soon as you can.

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