Creditors' bankruptcy petition: aggregating debts to reach the bankruptcy level (IA 1986 ss.267-268)

A creditor's petition may be presented in respect of 'one or more debts' by 'the petitioning creditor or each of the petitioning creditors' (s.267(1) IA 1986). Under s.267(2)(a), the amount of the debt, or the aggregate amount of the debts, must equal or exceed the bankruptcy level, which is £5,000 (s.267(4)). Together, the two debts total £5,300. Each is for a liquidated sum, unsecured and immediately payable (s.267(2)(b)). Dariusz appears unable to pay each debt because a statutory demand was served, at least three weeks have passed, and it has been neither complied with nor set aside (s.268(1)(a)). There is no outstanding application to set aside either demand (s.267(2)(d)). Mapleton and Sefton may therefore present a joint petition.

Why A is wrong: Section 267 allows debts owed to more than one petitioning creditor to be aggregated to reach the bankruptcy level.

Why B is wrong: A single creditor alone must be owed at least the bankruptcy level of £5,000; neither is.

Why C is wrong: An unpaid and unchallenged statutory demand is an alternative to unsatisfied enforcement of a judgment (s.268(1)(a) and (b)).

Why D is wrong: A debtor may apply for his own bankruptcy, but that does not prevent creditors from presenting a joint petition where the aggregate debt meets the bankruptcy level.