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Insolvency update

15 July 2016

 In October 2015 the bankruptcy threshold for individuals was raised from £750 to £5,000, the first increase in 30 years.

This means that those aiming to bankrupt an individual debtor can only do so if the debt is £5,000 or more, and the individual cannot pay. Debts under £5,000 should be pursued in the county court if an alternative agreement for payment cannot be reached.

However, the threshold for issuing a winding-up petition against a company has not increased from £750, and remains a useful tool for creditors.

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