Filing of Bankruptcy Notice in Court

Bankruptcy Notice issued

Extract Bankruptcy Notice (Bankruptcy Notice is only valid for 3 months)

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

Service of Bankruptcy Notice by (a) Personal service or (b) Substituted service

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