THE LEGAL STEP WHEN I CAN'T PAY MY DEBTS: CAN AN INDIVIDUAL PETITION FOR THEIR OWN INSOLVENCY
WHEN A DEBTOR MAY PETITION FOR THEIR OWN BANKRUPTCY A debtor has been described as one who owes an obligation to another, especially an obligation to pay money. A bankrupt person is one in respect of whom a bankruptcy order has been made per Section 2. Who can petition for bankruptcy ? Where one being the debtor, is unable to pay their debts, they may petition for their bankruptcy subject to section 20(1). This is also stated under regulation 7 of insolvency regulations which states that a debtor may petition court for his or her bankruptcy where the debtor has been served with a statutory demand and is unable to comply with the demand or is unable to pay his or her debts). This is also termed as voluntary bankruptcy. Other persons that can petition for bankruptcy may be creditors under sec. 69, directors under sec. 271 and members of the company under sec. 62 as seen in Re Imperial Investment Finance Ltd However in a bid to safeguard creditors’ inte...