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pay, inability to In relation to a bankruptcy petition, it is the debtors apparent inability to pay a debt payable immediately to pay a debt payable immediately, and either the petitioning creditor has served a statutory demand in prescribed form, and three weeks have elapsed and the debt has not been paid, or execution issued in respect of the debt has been returned unsatisfied. A companys inability to pay its debts is shown by proof that the value of its assets is less than the amount of its liabilities, taking into account contingent and prospective liabilities: |