C1 PART IXBANKRUPTCY
CHAPTER IBANKRUPTCY PETITIONS; BANKRUPTCY ORDERS
Creditor's petition
Proceedings on creditor's petition245
1
The High Court shall not make a bankruptcy order on a creditor's petition unless it is satisfied that the debt, or one of the debts, in respect of which the petition was presented is either—
a
a debt which, having been payable at the date of the petition or having since become payable, has been neither paid nor secured or compounded for, or
b
a debt which the debtor has no reasonable prospect of being able to pay when it falls due.
2
In a case in which the petition contains such a statement as is required by Article 244, the High Court shall not make a bankruptcy order within 3 weeks from the service of any statutory demand under Article 242.
3
The High Court may dismiss the petition if it is satisfied that the debtor is able to pay all his debts or is satisfied—
a
that the debtor has made an offer to secure or compound for a debt in respect of which the petition is presented,
b
that the acceptance of that offer would have required the dismissal of the petition, and
c
that the offer has been unreasonably refused;
and, in determining for the purposes of this paragraph whether the debtor is able to pay all his debts, the Court shall take into account his contingent and prospective liabilities.
4
In determining for the purposes of this Article what constitutes a reasonable prospect that a debtor will be able to pay a debt when it falls due, it is to be assumed that the prospect given by the facts and other matters known to the creditor at the time he entered into the transaction resulting in the debt was a reasonable prospect.
5
Nothing in Articles 241 to 244 and this Article prejudices the power of the High Court, in accordance with the rules, to authorise a creditor's petition to be amended by the omission of any creditor or debt and to be proceeded with as if things done for the purposes of those Articles and this Article had been done only by or in relation to the remaining creditors or debts.
Pts. VIII-X (arts. 209-345) modified by Foyle Fisheries Act (Northern Ireland) 1952 (c. 5), s. 52K(2) (as inserted (prosp.) by Foyle and Carlingford Fisheries (Northern Ireland) Order 2007 (S.I. 2007/915 (N.I. 9)), arts. 1(3), 3(1) (with art. 32))