Appeal Against A Bankruptcy Order

A bankruptcy has far-reaching consequences. Fortunately, a bankruptcy order can be set aside by lodging an appeal. This effectively reverses the consequences of the bankruptcy. Below we explain how this works.

Declaration of Bankruptcy

A debtor may be declared bankrupt when the following requirements are met:

1. there is prima facie evidence of the petitioning creditor's right of claim;
2. there is prima facie evidence of a supporting claim – establishing plurality of creditors, with the important condition that at least one of the claims is due and payable;
3. (the debtor is in a state of having ceased to pay – plurality is a necessary, but not sufficient, condition for this.