Is it unreasonable to refuse to accept a ‘reasonable offer’?
We regularly encounter respondents to bankruptcy petitions making offers at the eleventh hour and even as late as moments before the hearing – at the court door – wishing to avoid a Bankruptcy Order being made against them.
Whilst the court cannot compel a creditor to accept an offer to settle a petition debt, the court does have the power to dismiss a bankruptcy petition if a reasonable offer has been unreasonably rejected by the petitioning creditor.
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Read the full article
Read the full article in Insight magazine by Paul Caldicott, Partner in our Restructuring and Insolvency team.