HomeFWJ TakeawayResourcesHow do I prove the debtor is unable to pay their debts?

Proving the debtor is unable to pay their debts is vey important when considering a bankruptcy petition. Our friendly team can guide you though the process.

The test for issuing a bankruptcy petition

When considering if a bankruptcy petition should be issued, the court will regard an individual as being unable to pay their debts if either of the following occurs:

  • a creditor who is owed more than £5,000 serves a statutory demand for the debt due and it is not paid or secured (for example, by way of a charging order or a guarantee to provide something else of the same value); or
  • a settlement is not agreed, within 21 days, and the debtor has not applied for the statutory demand to be set aside.

Alternatively, if a creditor has obtained a county court judgment against the debtor and the court bailiff has been unable to recover enough assets to pay the debt, then the bailiff can provide a statement to the court to this effect, which is sufficient evidence of the debtor’s inability to be able to pay the debt.


One of our friendly debt recovery solicitors is available to help you with any type of petition or debt related enquiry. Whatever your question, we can help you.

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