GOLD Coast businessman Dudley Quinlivan has been forced into bankruptcy for the third time.

A Federal Magistrates Court in Brisbane yesterday declared Mr Quinlivan bankrupt seven months after his former law firm first filed a petition against him.

Mr Quinlivan, who was once denounced in state parliament as the "King Con" of property marketeering scams, had hoped to avoid another bankruptcy by striking a Part X personal insolvency agreement with creditors owed $113.3 million.

He had offered his creditors just $500,000 - or less than half a cent in the dollar - but was unable to prove he had the money earlier this month.

Fund manager Equititrust, which was the biggest creditor in its bid to recover $80 million, was instrumental in pushing for the bankruptcy as it emerged that the vast majority of those owed money had planned to vote against the Part X deal.

Mr Quinlivan's bankruptcy means that creditors now will not consider the Part X and their scheduled meeting later this month has been cancelled.

Equititrust chief executive David Kennedy said his firm was prepared to fund trustees Terry Van Der Velde and Jason Cronan, both of SV Partners, to carry out an additional investigation of Mr Quinlivan.

"Our position is to get as much money back as possible," Mr Kennedy said.

Mr Quinlivan said yesterday he would probably appeal the ruling and had a counterclaim against Equititrust seeking $108 million.

"It suited Equititrust as they need to keep the heat away from what is happening to themselves," he said.

The Australian Securities and Investments Commission's five-year ban on Mr Quinlivan's management of corporations was upheld by the High Court last month.