Section 271: Proceedings on creditor's petition.

Insolvency Act 1986 · 1986 c. 45View on legislation.gov.uk

Part IX: Bankruptcy — Chapter I: The court: bankruptcy petitions and bankruptcy orders

The 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 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
a debt which the debtor has no reasonable prospect of being able to pay when it falls due.

In a case in which the petition contains such a statement as is required by section 270, the court shall not make a bankruptcy order until at least 3 weeks have elapsed since the service of any statutory demand under section 268.

In determining for the purposes of this section 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.

Nothing in sections 267 to 271 prejudices the power of the 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 sections had been done only by or in relation to the remaining creditors or debts.

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Reuse reviewed 21 August 2026 under Open Government Licence v3.0.