| Commentary

77 Inability to pay future debts

| Commentary

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

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