Where the Court is not persuaded by the debtor’s grounds of opposition, the Court will carefully consider all the evidence and legal requirements to determine whether or not to make a Sequestration Order against the debtor’s estate. Generally a creditor has a facie right to a Sequestration order upon proof on affidavit at the hearing of the petition that: the debtor has committed an act of bankruptcy within 6 months of presenting the petition a minimum liquidated debt of $5,000 was owed at the date of the act of bankruptcy referred to in the petition and remains owing at the date of the hearing of the petition the matters stated in the petition have been verified the petition has been properly served and all the searches and updating affidavits comply with the requirements referred to in rule 4.06 of the Bankruptcy Rules. For a more detailed explanation of the formal requirements, refer to and the detailed checklist in . Where a Sequestration Order is made, the creditor will ordinarily be entitled to recover its legal costs of the petition from the bankrupt estate. After the hearing Upon the making of a sequestration order, a trustee will be appointed to the debtor’s estate to manage their financial affairs. Unless a private registered trustee has given their written consent to act, the Official Receiver (administered by AFSA) will manage the bankrupt estate. Further information on the consequences of bankruptcy is available on . Related practice materials Debtors are also referred to the following related material: Bankruptcy Information Sheet 1: Bankruptcy Information Sheet 2: Bankruptcy Information Sheet 4: Bankruptcy Information 5:
Where the Court is not persuaded by the debtor’s grounds of opposition, the Court will carefully consider all the evidence and legal requirements to determine whether or not to make a Sequestration Order against the debtor’s estate. Generally a creditor has a facie right to a Sequestration order upon proof on affidavit at the hearing of the petition that: the debtor has committed an act of bankruptcy within 6 months of presenting the petition a minimum liquidated debt of $5,000 was owed at the date of the act of bankruptcy referred to in the petition and remains owing at the date of the hearing of the petition the matters stated in the petition have been verified the petition has been properly served and all the searches and updating affidavits comply with the requirements referred to in rule 4.06 of the Bankruptcy Rules. For a more detailed explanation of the formal requirements, refer to and the detailed checklist in . Where a Sequestration Order is made, the creditor will ordinarily be entitled to recover its legal costs of the petition from the bankrupt estate. After the hearing Upon the making of a sequestration order, a trustee will be appointed to the debtor’s estate to manage their financial affairs. Unless a private registered trustee has given their written consent to act, the Official Receiver (administered by AFSA) will manage the bankrupt estate. Further information on the consequences of bankruptcy is available on . Related practice materials Debtors are also referred to the following related material: Bankruptcy Information Sheet 1: Bankruptcy Information Sheet 2: Bankruptcy Information Sheet 4: Bankruptcy Information 5:
Bankruptcy-Info-Sheet-3-Opposing-a-Creditors-Petition-FCA-version-201609.docx