I Have Received A Bankruptcy Notice

When a person fails to pay their debts when they fall due and owing, creditors (people who are owed money) can issue a bankruptcy notice on that person to force them into bankruptcy.

A bankruptcy notice can be issued if an individual owes a creditor $5,000 or more.

If you have received a bankruptcy notice, you have 21 days in which to either (1) declare yourself voluntarily bankrupt; (2) dispute the debt, the subject of the notice; or (3) pay the debt/negotiate a payment arrangement with the debtor to pay the debt.

If you do not take any of the steps outlined above, then the creditor can file a creditors petition with the federal court to escalate the matter.

If you receive a creditors petition, you have to act quickly. Typically, the matter will be set down to be heard before the court in 1 month from the date you receive the creditors petition.

Again, there are options available if you receive a creditors petition.

Those are again, either (1) declare yourself voluntarily bankrupt; (2) dispute the debt, the subject of the notice; or (3) pay the debt/negotiate a payment arrangement with the debtor to pay the debt.