Apparent insolvency is the term to describe your situation if you have debts that you are unable to pay and have had legal action started against you by your creditor(s) due to this. The consequences of apparent insolvency involve one or both of the following:
One of your creditors has obtained a decree for payment in respect of that particular debt and you have failed to pay what is known as a 'Charge for Payment' within the fourteen days allowed
One of your creditors has obtained a statutory demand for payment in respect of a particular debt and you have failed to meet this demand within the twenty-one days allowed
Apparent insolvency also occurs when you or your representative writes to your creditor(s) to inform them that you have ceased to keep up with the terms of the Trust Deed.
