APPARENT INSOLVENCY
What does 'apparent insolvency' mean?
Apparent insolvency is defined in section 7 of the Bankruptcy (Scotland) Act 1985. The three most common
grounds are:
- a charge for payment has been served on the debtor and the 14 days allowed for payment have passed without the debt being paid;
- a creditor has served a statutory notice on the debtor and 21 days have expired and the debtor has not paid the debt nor returned the denial slip; and
- the court has granted a summary warrant for the recovery of unpaid rates or taxes and goods have been attached (or there has been an attempt to attach them) and 14 days have passed without payment.
Appendix 1 gives other conditions of apparent insolvency.
How much must a debtor owe before a charge for payment can be served on him for the recovery of a debt?
There is no set sum. It is for any amount for which the creditor has obtained a court decree.