ABSTRACT

The statutory provisions substitute an earlier date for striking a balance on the account between the insolvent and the other party where the other party had notice of a pending petition or of a meeting to consider a resolution for winding up. This does not deal with the situation where it is quite apparent to the creditor that the debtor is unable to pay his or her debts; the creditor will be able to assign the debt to someone indebted to the debtor who will thereby be able to obtain the full value of the assigned debt in the course of an insolvency. The Cork Committee recognised this problem88 and recommended a change to the rules but this has not happened.