LAWS107 Chapter Notes - Chapter 7: Official Receiver, Corporations Act 2001, Judgment Debtor
Document Summary
Bankruptcy is the method by which the normal rights of a creditor are withheld in the. Arrangements with creditors outside bankruptcy interests of the debtor and the creditors as a whole and by which the law of debt is modified to effect a compromise beneficial to all parties. Application and scope of the act: the act: applies to all debtors. prescribes the following courses as the means by which proceedings may be initiated to administer a debtor"s property under the act: The bankruptcy of a debtor may be brought about by the debtor presenting a petition to the official receiver: s 55. More commonly, a creditor will initiate bankruptcy proceedings against the debtor by presenting a petition: > the creditor asks the court to make a sequestration order against the estate of the debtor. If the order is made, the debtor becomes a bankrupt: s 43.
