Practice question
A debtor generally cannot pay liabilities as they fall due but argues it cannot be insolvent because total asset value still exceeds liabilities. Which is correct under section 4(p)?
- General inability to pay as due is an alternative statutory insolvency condition
- Only a negative balance sheet ever counts
- Both conditions must always coexist
- Insolvency requires every asset to disappear
- Only corporations can ever be insolvent
Legal references
- https://lawphil.net/statutes/repacts/ra2010/ra_10142_2010.html — RA 10142, sections 2–5
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