Q&As

Where a petition for bankruptcy is filed in respect of an outstanding judgment debt and the bankruptcy order is refused on the basis that the debtor is able to pay his debts as they fall due, is the bankruptcy court able to make an order for enforcement of the judgment? Or is there simply a refusal to grant to the order and any enforcement must be sought separately?

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Published by a LexisNexis Restructuring & Insolvency expert

Published on: 06 July 2017

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By section 271(3) of the Insolvency Act 1986 (IA 1986), the Bankruptcy court may ‘dismiss the petition’ if it is satisfied that the Debtor is able to pay all his debts taking into account his contingent and prospective liabilities. The very nature of the petition process is binary—whether a Bankruptcy order

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Jurisdiction(s):

United Kingdom

Key definition:

Bankruptcy definition

What does Bankruptcy mean?

The court supervised process whereby the assets of an insolvent individual are realised for the benefit of his creditors.

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