Form B6: Creditor's petition

A creditor may petition for a sequestration order against a debtor (Bankruptcy Act s 43) only if the debtor owes the petitioning creditor or creditors at least the statutory minimum in liquidated debts and the act of bankruptcy relied on was committed within 6 months before the petition is presented (s 44(1)). The petition must be verified by an affidavit of a person who knows the relevant facts, and be in the form the rules prescribe (s 47(1)-(1A)). Rule 4.02 of the Division 2 Bankruptcy Rules prescribes Form B6, which includes a verifying affidavit (or it may be filed separately with the petition attached). Where the act of bankruptcy is failure to comply with a bankruptcy notice, rule 4.04 also requires an affidavit about searches of court records and an affidavit of service of the bankruptcy notice.

When you need it

• A debtor owes you a liquidated debt of at least the statutory minimum (check the current amount under section 5 of the Bankruptcy Act).
• The debtor committed an act of bankruptcy, most often failing to comply with a bankruptcy notice, within the last 6 months.
• The debtor has the required connection with Australia at the time of the act of bankruptcy.

1. 1

   The petition and the debt

   Give the applicant creditor's name and address and the debtor's name, address and occupation, then the amount owed and the reason for the debt, including details of any judgment.

2. 2

   Security

   State that you hold no security, or describe the security and either say you will surrender it for the benefit of creditors generally or state its value and the unsecured balance (s 44(2)-(4)).

3. 3

   Connection with Australia and the act of bankruptcy

   Select how the debtor was connected with Australia (present, resident, dwelling or business, or carrying on business). Then describe the act of bankruptcy: for a bankruptcy notice, the dates of service and of non-compliance; for any other act under section 40, full details.

4. 4

   Information for AFSA (optional paragraph)

   Give, if known, any alias, date of birth, business name and business address, or write "unknown" or "inapplicable".

5. 5

   Address for service and verifying affidavit

   Give your address for service and email. The deponent swears or affirms that the statements are true and that the debtor did not pay or make a satisfactory arrangement within 21 days after service of the bankruptcy notice.

• Lodge the petition with the rule 4.04 affidavits in the FCFCOA (Division 2), with copies for service unless filed electronically (r 4.02(4)). A filing fee applies: check the court's fee schedule.
• Give a copy of the petition to the Official Receiver within two business days after the court files it (form note, citing the Bankruptcy Regulations 2021).
• At least 5 days before the hearing, serve the debtor with the petition, the verifying affidavit, any rule 4.04 affidavits and any trustee's consent to act (r 4.05). Before the hearing, file affidavits of service, of a National Personal Insolvency Index search made no earlier than the day before, and that the debt is still owing (r 4.06).
• A debtor who opposes must file Forms B4 and B5 with an affidavit and serve them at least 3 days before the hearing (r 2.06).

• Check the 6-month window carefully: it runs from the act of bankruptcy to presentation of the petition (s 44(1)(c)).
• A petition cannot be withdrawn after presentation without the court's leave (s 47(2)), and it lapses after 12 months unless extended (s 52(4)-(5)).
• If a sequestration order is made, notify the trustee the same day and give the Official Receiver a copy within 2 days (r 4.07; s 52(1A)).