The bankruptcy act defines insolvent as when somebody cant pay all their debts as and when they become due and payable .
My question is , If you are servicing all the debts ( mortgage , loans , credit cards etc ) by paying the monthly payments , are you classed as being insolvent ?
Are you only insolvent when you cant service the monthly payments when requested ?
I ask this as upto april this year everything was paid on time when it became due , but since then some things have been paid , some have been paid late and some not at all ! and i would consider ( for the purposes of the SoA ) this as been when i first realised i could not pay my debts . Am i correct in this assumption please ??
for the purpose of the soa you are correct, although if you were using credit ( cash withdrawals ) to pay for credit then you should try to identify when this was.
This is usually the critial point at which everything goes out of control
Paul Johns Assisted Bankruptcy Specialists Reviva UK www.revivauk.com
insolvency
Posted - 18 September 2008 : 22:28:23
