Apparent insolvency

Apparent insolvency is a legal term that shows a debtor cannot pay their debts as they become due. There are various ways in which apparent insolvency is triggered however, the most commonly used types of proof are:

•    The serving of a charge for payment on the debtor
•    The serving of a statutory demand on the debtor

Among the other more remote types of proof are:

•    A decree of adjudication has been granted
•    A debt payment programme under DAS has been revoked

Apparent insolvency remains in place until either the debtor is discharged or becomes able to pay the debts and does so.