195. Proceedings on creditor's petition.

The court may not make a bankruptcy order on a creditor's petition1 unless it is satisfied that the debt, or one of the debts, in respect of which the petition was presented is either:


    (1)     a debt which, having been payable at the date of the petition or having since become payable, has neither been paid nor secured nor compounded for; or


    (2)     a debt which the debtor has no reasonable prospect of being able to pay when it falls due2.

In a case in which the petition contains a statement3 that there is a serious possibility that the debtor's