77 Inability to pay future debts

The Insolvency Act 1986 provides a method of showing that the debtor appears to have no reasonable prospects of paying a debt which falls due in the future. To establish inability to pay in such a case, three conditions must be fulfilled1:

  1. 77.1

        the petitioning creditor to whom the debt is owed must have served on the debtor a statutory demand in the prescribed form2, requiring him to establish to the satisfaction of the creditor that there is a reasonable prospect that he will be able to pay the debt

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to LexisLibrary or register for a free trial