The judge will look through your petition and if they feel you are not insolvent then the application can be refused, however this is very rare.
More common is where someone has been in an IVA and their IVA has not yet failed, the judge likes to see either a letter from the IVA Company or a certificate of failure before they grant the order for Bankruptcy
Thanks, Julian. Just one more question about preferential payments. What will be the most acceptable answer to question 3.6 of the SOA if one or two payments have continued because they are small. I accept one has to be honest;but what is the best way of putting this across. Sorry I keep coming back to this question. And Thank You again.
I would suggest being totally open and honest. If the OR deems it to be a preferrential payment, they can get the money back from that lender and then make pro-rata payments to ALL of your unsecured creditors with the proceeds.
REFUSAL OF BANKRUPTCY APPLICATION
Posted - 01 June 2008 : 14:35:17
