We want to advise people to be aware of new rules regarding bankruptcy and insolvency which have today come into force.
As from today (Thursday October 1), the minimum level of debt for which an individual can be made bankrupt is to increase from £750 to £5,000 – the first increase of its kind since the Insolvency Act was introduced in 1986.
Although some campaigners welcome the move as it could prevent creditors making people bankrupt for “unreasonably small debts”, the new rules could make it more difficult for people to pursue trades people, landlords or others who are steadfastly refusing to pay what they owe.
The rise in the bankruptcy petition threshold was expected although £5,000 is far higher than first thought.
It is right that it should be increased as £750 was an entirely inappropriate level and the protection it offered people in financial trouble had been steadily eroded by inflation over the last three decades.
The rise in the petition threshold will require people who are pursuing unpaid sums to look at other options for the pursuit of low value debts.
While a bankruptcy petition is not always the most proportionate tool for this, it’s very important that the insolvency regime maintains a balance between protecting the interests of both debtors and creditors.
We work hard to handle any issues relating to insolvency in a sensitive manner and we have various experts with many years’ experience in this field. We are also able to advise those owed money how best to secure payment.
Endeavour Partnership was launched in 1999 and has continued to grow at its base at Teesdale in Stockton. Earlier this year the company announced its best year to date following a period of growth and restructuring during its 15th year in business.
Don’t hesitate to contact us should you need any assistance in this kind of matter or anything else relating to corporate law.
Partner and head of corporate recovery & insolvency
Endeavour Partnership, Stockton