Wednesday, August 22, 2012

BANKRUPTCY PROCEEDINGS


THE FLOWCHART FOR BANKRUPTCY PROCEEDINGS UP TO THE STAGE A DEBTOR IS ADJUDGED A BANKRUPT?
Filing of Bankruptcy Notice in Court
Bankruptcy Notice issued
Extract Bankruptcy Notice
(Bankruptcy Notice is only valid for 3 months)
Service of Bankruptcy Notice by
(a) Personal service or
(b) Substituted service
If personal service fails after 2 attempts
Apply to serve by way of substituted service
Order for Substituted Service obtained and service by publication of Bankruptcy Notice in local newspaper
Judgment Debtor to respond within 7 days from the date of personal service or the date as published for substituted service


Judgment Debtor responded within the time limit
No response from Judgment Debtor within the time limit
Full settlement or acceptable proposal for full settlement
Judgment Debtor commits an act of Bankruptcy
Filing of Bankruptcy Petition
(a) Creditors Petition (must be verified by an affidavit)
If personal service fails after 2 attempts
Service of Creditors Petition
(a) Personal service or
(b) Substituted service
Apply for substituted service
Affidavit of Service
Creditors Petition Hearing before the judge
Judge's decision
No order due to :
(a) Full payment made before the Creditors Petition hearing
(b) Acceptance by Creditor for a composition sum
(c) Postponement of the hearing due to defence submitted by Judgment Debtor
(d) Acceptance of partial payment after service of Bankruptcy Notice
(e) Bankruptcy rules and procedures not strictly followed.
Receiving and Adjudication Order is made
Judgment Debtor is adjudged a Bankrupt






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