Bankruptcy Act · 1985 Revised Edition · Part I · Proceedings from Act of Bankruptcy to Discharge
5. Conditions on which creditor may petition
Feedback & supportA creditor shall not be entitled to present a bankruptcy petition against a debtor unless —
bankruptcy petition
“bankruptcy petition” includes a petition for a receiving order;
the debt owing by the debtor to the petitioning creditor, or if two or more creditors join in the petition, the aggregate amount of debts owing to the several petitioning creditors, amounts to $500;
the debt is a liquidated sum payable either immediately or at some certain future time; and
the act of bankruptcy on which the petition is grounded has occurred within 6 months before the presentation of the petition.
If the petitioning creditor is a secured creditor he must in his petition either state that he is willing to give up his security for the benefit of the creditors in the event of the debtor being adjudged bankrupt or give an estimate of the value of his security. In the latter case he may to the extent of the balance of the debt due to him, after deducting the value so estimated, be admitted as a petitioning creditor in the same manner as if he were an unsecured creditor.
secured creditor
“secured creditor” means a person holding a mortgage, charge or lien on the property of the debtor or any part thereof as a security for a debt due to him from the debtor;