Bankruptcy action against judgement debtor.
Author(s):John Bingham B.A. (Ec.), LL.B.
Publish Date: May 15, 2008
Shortly before Christmas, a family man living in Sydney received a bankruptcy notice against him and came to see LAC Lawyers just after Christmas.
The bankruptcy notice was based on and referred to a judgment obtained in a Victorian court. However the amount of the judgment was incorrect as the creditor was only entitled to a lower amount.
Accordingly prompt action was required if the client was to avoid committing an act of bankruptcy. Our client was faced with the prospect of having to incur a considerable amount for legal costs to have the judgment set aside and this would have quite likely involved his having to fly at short notice to Melbourne for the purposes of an urgent court application.
We contacted the solicitors for the creditor and brought to their attention that as the judgment was for an incorrect amount, the bankruptcy notice was consequently defective. Accordingly we had the bankruptcy notice set aside.
All of this happened from the time our client got the bankruptcy notice on the verge of Christmas until just after the New Year, a most inconvenient time for anyone. This has at least given the client some time to re-organise his affairs and hopefully the possibility of entering into a fresh arrangement with the creditor to pay the debt by instalments.
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Phone LAC Lawyers on NSW 1300 799 888 or VIC 1300 734 638 or send us an email
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