Against individuals
It targets an individual or sole trader — the counterpart to a company statutory demand.
Enforcement
Bankruptcy notices explained
A bankruptcy notice is a serious step against an individual debtor after judgment — not a first move. Here's how it fits, and why commercial recovery usually comes first.
A bankruptcy notice is a formal demand issued under the Bankruptcy Act against an individual (including a sole trader) who owes a judgment debt above the statutory minimum. If the individual does not pay or otherwise deal with it within the set period, failing to comply is an 'act of bankruptcy' that can support a later creditor's petition. It is the individual-debtor counterpart to the statutory demand used against companies, and like that tool it sits firmly at the serious end of enforcement.
Because a bankruptcy notice requires an existing judgment and carries significant consequences, it should only ever be used with proper legal advice — and only after commercial recovery has been given a fair run. Most overdue accounts are resolved far earlier through a professional demand and follow-up. Merion pursues payment commercially first, on a no-recovery-no-commission basis, and prepares a matter cleanly if escalation is warranted. This is general information, not legal advice; the statutory threshold and procedure should be confirmed with a qualified solicitor. To try commercial recovery first, refer the account.
Where it fits
A serious, post-judgment step
Requires a judgment
A bankruptcy notice needs an existing judgment debt above the statutory minimum.
Get advice first
The consequences are serious — use it only with proper legal advice.
Recovery first
We pursue payment commercially before any such step is considered.
Don't jump to bankruptcy
Refer the account and we'll pursue payment professionally first.
Common questions
Frequently asked questions
What is a bankruptcy notice?
A formal demand under the Bankruptcy Act against an individual who owes a judgment debt above the statutory minimum. Failing to comply can be an act of bankruptcy supporting a later petition.
Is it the same as a statutory demand?
It's the individual-debtor counterpart. A statutory demand is used against a company; a bankruptcy notice is used against an individual or sole trader.
Do I need a judgment first?
Yes. A bankruptcy notice requires an existing judgment debt, so it's a post-judgment enforcement step — not a first move. Most accounts resolve well before that.
Is this legal advice?
No — this is general information only. The threshold and procedure should be confirmed with a qualified solicitor.
Get started
Owed money by a sole trader?
Refer it for a free appraisal — we'll try recovery first.