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