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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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Disclaimer: All legal information is correct at the time of publication but please be aware that laws may change over time. This article contains general legal information but should not be relied upon as legal advice. Please seek professional legal advice about your specific situation - contact us; we’d be delighted to help.
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