If you haven't paid your debts, the person or organisation you owe money to may serve you with a bankruptcy notice[?] - a formal demand for payment. You have 2 options:
1. Reach an agreement with your creditor:
You have 21 days from the day you receive the notice to come to an agreement with your creditor. Contact your creditors to discuss payment options.
2. Don’t reach an agreement with your creditor:
If you don’t meet the demands for payment, you may be committing an 'act of bankruptcy'[?]. Your creditors may use this to make you bankrupt by order of the court. We call this a sequestration order[?].
Where to get help
We suggest you also seek your own independent legal advice about the bankruptcy notice you've received. For more information see Seek legal assistance.
You can also get help from a financial counsellor to consider your options. Their services are free, independent and confidential. They can provide advice about your financial situation and recommend the best option for you to deal with unmanageable debt.
To speak with a free financial counsellor contact the National Debt Helpline on 1800 007 007.
For more information on financial counsellors and other support services see Where to find help.