Can a debtor be made bankrupt if their assets exceed their debts?
Yes. If someone is unable to pay their debts as and when they fall due, they are legally insolvent. If a debtor owns sufficient assets to cover his debts but is unable to liquidate them to actually pay those debts, they are insolvent and may be bankrupted. The Official Receiver has the discretion not to accept a debtor’s petition if they believe that the debtor is solvent and could satisfy their debts with a little effort.
