You've received a bankruptcy notice. You have 21 days.

The clock starts when you are served

A bankruptcy notice is not a casual reminder from a creditor. It is a formal demand based on a final judgment or order, and once it is served, the 21-day clock starts. In that window, you must pay, make arrangements the creditor accepts, or ask the Court to set it aside or extend time. ([fedcourt.gov.au](https://www.fedcourt.gov.au/law-and-practice/guides/guides-bankruptcy/information-sheet-4/_nocache))

The practical problem is not the paper itself. It is what happens if the deadline passes: non-compliance can become an act of bankruptcy, and the creditor may rely on it in later bankruptcy proceedings. If you are already under financial pressure, the notice can turn one debt into a personal insolvency problem very quickly. ([fedcourt.gov.au](https://www.fedcourt.gov.au/law-and-practice/guides/guides-bankruptcy/information-sheet-4/_nocache))

Check the judgment before you decide

Start with the judgment or order behind the notice. Check that it is final and not stayed. Then confirm the date and method of service, because the 21 days are calculated from service and can change depending on how the notice was delivered. That date is the one that matters most. ([fedcourt.gov.au](https://www.fedcourt.gov.au/law-and-practice/guides/guides-bankruptcy/information-sheet-4/_nocache))

Keep the notice, the envelope or service record, the judgment, and any email trail together. If service is wrong, the debt amount is overstated, or the underlying judgment is being challenged, those details matter. A debtor who wants the Court to act needs evidence, not just a general complaint that the notice feels unfair. ([fedcourt.gov.au](https://www.fedcourt.gov.au/law-and-practice/guides/guides-bankruptcy/information-sheet-4/_nocache))

Source: Official guidance

Talk to the creditor with a real plan

If you can pay in full, say so quickly. If you cannot, contact the creditor and offer a specific alternative: a short payment timetable, a lump sum on a set date, or another arrangement the creditor can actually assess. AFSA says the debtor may use the 21 days to come to an agreement with the creditor. ([afsa.gov.au](https://www.afsa.gov.au/i-cant-pay-my-debts/ive-been-served-bankruptcy-notice))

Put every phone call into writing the same day. Confirm what you offered, what the creditor said, and whether anything was accepted. If the creditor agrees to an arrangement, get it recorded before you send money. A written record reduces later disputes about whether the notice was resolved or merely paused. ([afsa.gov.au](https://www.afsa.gov.au/i-cant-pay-my-debts/ive-been-served-bankruptcy-notice))

Move fast if you have grounds

If the notice or the judgment can be challenged, do not leave the filing until the end of the window. The Federal Court says a debtor served in Australia has 21 days from service to apply, and the Court will not have jurisdiction if the application is brought outside that period, except for a narrow separate-proceedings exception. ([fedcourt.gov.au](https://www.fedcourt.gov.au/law-and-practice/guides/guides-bankruptcy/information-sheet-4/_nocache))

Common grounds include a challenge to the judgment debt, a counter-claim or set-off, or other defects such as a stay, a material error, or a notice that is not completed correctly. The Court wants material evidence, not a bare assertion. If your case is technical, get advice early enough for documents to be prepared properly. ([fedcourt.gov.au](https://www.fedcourt.gov.au/law-and-practice/guides/guides-bankruptcy/information-sheet-4/_nocache))

Pull the file together today

Build a clean file now: the notice, proof of service, the judgment, bank statements, recent cash flow, and any message with the creditor. If your position depends on a counter-claim, stay, or misstatement in the notice, the evidence has to be current and specific. That is what lets an adviser see whether payment, negotiation, or court action is realistic. ([fedcourt.gov.au](https://www.fedcourt.gov.au/law-and-practice/guides/guides-bankruptcy/information-sheet-4/_nocache))

If the 21 days are already running, treat this as urgent. CRP coordinates independent qualified professionals who can assess the notice, the judgment behind it, and the practical next step. Call CRP today about insolvency services so you can act before the deadline closes and help you coordinate the right response. This is general information only. ([fedcourt.gov.au](https://www.fedcourt.gov.au/law-and-practice/guides/guides-bankruptcy/information-sheet-4/_nocache))