Sequestration Order
It Isn’t the End,
It’s Time To Fight Back
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The Sequestration Order in Australia – The Final Bankruptcy Step
You’ve received, or are about to receive, a Sequestration Order. You think resignedly, ‘That’s it, I’m bankrupt’. And technically, you’re right, that’s what the Order does … formally declaring you as being bankrupt, and your assets going into the hands of a Trustee.
But, even at this seemingly final stage … a moment that feels inescapable, worrying, and hopeless … all isn’t lost.
At Ash Walker Lawyers, we give you the urgent and understanding support you need … acting swiftly to explain what the Order means, whether you can challenge, and the proactive steps you can take right now. It’s our mission to work ceaselessly to set aside where possible, protect your interests, and give you a positive future.
What Is a Sequestration Order?
In short, a Sequestration Order is a decree made by the court that officially makes you Bankrupt.
Usually, it’s granted under Section 43 of the Bankruptcy Act 1966 by the Federal Circuit and Family Court of Australia. It happens after the court is satisfied that you committed an act of bankruptcy … usually not complying with a Bankruptcy Notice … and the ATO (or another creditor) subsequently issuing a Creditor’s Petition.
What Happens After a Sequestration Order?
- Appointment of a Trustee in Bankruptcy – an official or private Trustee is assigned to address your affairs.
- Trustee notification – the Trustee will write to you and inform you that you are bankrupt.
- Loss of asset control – your belongings, cash, accounts, debts, and financial interests are passed to the Trustee in Bankruptcy.
- Legal instructions imposed – including:
- Inability to obtain credit over a certain limit.
- Restriction on travelling overseas without permission.
- Strict reporting and disclosure duties.
- Potential repayment if you earn above the statutory threshold.
- You complete a Statement of Affairs – beginning your bankruptcy period (three years and one day), once filed.
The ATO is one of the most common creditors seeking these orders due to unpaid tax liabilities. Ultimately, think of it like this … the Bankruptcy Notice is their threat, the Creditor’s Petition is their knife, and the Sequestration Order is their Execution. But, Ash Walker Lawyers is your legal shield.
Facing a Sequestration Order? Act NOW!
Can You Appeal a Sequestration Order?
Yes, even at this extremely late time, you can challenge a Sequestration Order.
Ideally, you should speak to Ash Walker Lawyers at the first possible sign of financial distress or during an earlier stage of the insolvency process … such as when you receive a Bankruptcy Notice or a Creditor’s Petition. At these points, we have the maximum number of legal defences, chances, and time to stop bankruptcy.
But if those windows of opportunity have passed and the Order has already been made by the court … the fight isn’t over, you can still apply for a review:
Review of the Sequestration Order – Time to Act Fast
From the date the Sequestration Order is made, you only have 21 days to apply to the court for a review, basically, a new hearing.
The judge re-examines the circumstances from the beginning and decides if all the requirements for a Sequestration Order were met. If you, or rather your legal representative, can convince the judge they have not, the court can:
- Set aside the Sequestration Order – reverse the order, the same as if it never happened in the first place.
- Annul the bankruptcy – end the bankruptcy, although the records show it still occurred.
In either case, you regain control of your assets from the Trustee.
Allowable Grounds To Review a Sequestration Order / Bankruptcy
Common and eligible reasons on which you can review a Sequestration Order can include:
- There was no Act of Bankruptcy.
- The debt is disputed, you don’t owe the applicant the money claimed.
- The debt was owed, but has been paid.
- Procedural errors occurred.
- There is a cross-claim, the applicant owes you money.
- You were solvent, able to pay your debts when they were due.
- You didn’t receive a Bankruptcy Notice.
At Ash Walker Lawyers, we act urgently to investigate your grounds for review, file all required forms, and give powerful representation at the hearing. By your side, we strive to restore financial control back to you.
Stop the Bankruptcy, Reclaim Your Financial Control,
How We Challenge the Sequestration Order – The Process
After we appeal the Sequestration Order on your behalf, a judge will usually listen to all circumstances and grounds for review at the new hearing. Our process typically follows these steps:
Step 1 – File Necessary Documents
We lodge the Application for Review (Form B3A) and Notice to Creditors (Form B12) with the court inside the 21-day time limit. The forms are then stamped by the registry office, and you receive a new hearing date. We must serve the Notice to all creditors and the Trustee at least seven days before the review hearing.
Step 2 – Gather Evidence
We quickly start to prepare your defence and gather all necessary evidence. We are allowed to use both historical and new evidence.
Step 3 – The Hearing and Evidence
We act and speak on your behalf at the review hearing in front of the judge. We may:
- Show that the required Creditor’s Petition was flawed.
- Prove your solvency or ability to pay the debt now.
- Show no valid act of bankruptcy occurred.
- Identify serious procedural errors.
- Establish that the debt is disputed or offset.
- Ask for an order that the bankruptcy be set aside or annulled.
Step 4 – The Verdict
Based on the evidence provided, the judge will make a decision using fresh eyes. They generally have three options:
- Set Aside the Order.
- Annul the bankruptcy.
- Dismiss the review, the bankruptcy still stands.
Bear in mind that even while we are challenging the Order on your behalf … you still have crucial obligations. You must still lodge your Statement of Affairs with AFSA within 14 days of being notified of bankruptcy, or there may be heavy penalties and the risk of jeopardising your review.
Get Professional Defence
If YOU Need To Seek a Sequestration Order
Although our key mission is to defend and support individuals in financial distress … Ash Walker Lawyers can also represent you if you need to enforce your rights against a debtor.
Unpaid trade invoices or liabilities can place you in serious financial troubles. Therefore, if you’re owed $10,000 or more and the debtor hasn’t complied with a Bankruptcy Notice … we can assist you in filing a Creditor’s Petition and asking the Court to make a Sequestration Order.
We handle every step, ensuring your petition is legally compliant, supported by evidence, properly served, and professionally presented in the Federal Circuit and Family Court. Our goal is to maximise your chances of recovering the funds rightly due to you through the bankruptcy process.
Why Is an Experienced Lawyer Crucial Against a Sequestration Order?
Because, without professional advice, you’re bankrupt.
The Sequestration Order means that the decision has been made, and assets are on the verge of being transferred to a Trustee. Every minute is crucial, and every action is vital.
At Ash Walker Lawyers, we give you the rapid legal defence and supportive advice you need to fight against this final court order. We deliver:
✔ Time-critical challenges – immediate guidance to secure all legal documents and file your Application for Review inside the 21-day deadline.
✔ Order scrutiny – a thorough examination of the original Creditor’s Petition and Bankruptcy Notice to find errors that show that the Order should never have been made.
✔ Asset control – advice on how to legally challenge the Trustee’s power over your property, and which ones they cannot touch.
✔ Strategy for set aside/annulment – guidance on ways to have the Order reversed or bankruptcy cancelled.
✔ Court representation – relentless advocacy at a review hearing to argue your corner and fight for your financial recovery.
Don’t Try To Defend Alone!
Ash Walker Lawyers … Your Sequestration Order Defence Experts
If the court grants a Sequestration Order, bankruptcy becomes very real. You’re worried for yourself, your family, and your future … and you feel isolated and confused by the loss of control.
Ash Walker Lawyers are here to give you a proactive, supportive way forward.
With genuine compassion and understanding, we bring urgent and knowledgeable legal support and guidance to challenge the Order, reverse the bankruptcy, and defend your position in the Federal Court.
With Ash Walker Lawyers, You Get the Advantages Of:
24-Hour FREE Hotline
Bankruptcy is on your mind all the time. Get urgent guidance when you require it.
Prompt Action
Speedy advice and immediate filing are necessary to challenge the final court order.
Non-Judgemental Assistance
Supporting you and giving you a way forward, not offering criticism.
Tailored Strategy
Prioritising your best outcomes, whether that’s setting aside the Order or pursuing a settlement to annul the bankruptcy.
Being Your Voice
Tackling all correspondence and discussion with the Trustee in Bankruptcy and creditors on your behalf.
Bringing Structure to Stress
Delivering much-needed peace of mind to worrying legal situations.
Facing a Sequestration Order?
Sequestration Order FAQs
What Does a Sequestration Order Mean?
A Sequestration Order is the final court Order in the personal insolvency process … formally declaring you to be bankrupt. Immediately, your assets are transferred to a Trustee in Bankruptcy.
Who Pays the Sequestration Appeal Costs?
It depends on the outcome of the review.
If you succeed, the court may still make you pay the creditor’s legal costs, if they believe your arguments could have been raised in the earlier Creditor’s Petition hearing.
Should your review not be successful … or you withdraw it or settle before the hearing … again, you are usually made to pay the creditor’s expenses.
Does the Trustee Take Control of All My Assets?
Yes, to a limit. After a Sequestration Order, they can seize everything from property to investments, and vehicles to collectables. However, usually they cannot control things like household furniture or tools of your trade.
Will a Sequestration Order Affect My Credit?
Yes. Once the Sequestration Order is made, it’s recorded and shown on credit reporting agency files for five years from the date of bankruptcy. Furthermore, the bankruptcy is recorded permanently on the National Personal Insolvency Index (NPII) … searchable by the public.