Author: Nona Bowkis
Published: February 17, 2015
Reading time: 1 minute
This article is 11 years old.
Read our disclaimer keyboard_arrow_down
This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.
The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.
The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.
Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.
If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.
All characters are fictitious and should not be taken as referring to any person living or dead.
Use of this website shall be considered acceptance of the terms of the disclaimer presented above.
The Government have announced that from October 2015, the bankruptcy creditor petition limit will be raised from £750 to £5000.
Currently, if you are in debt to someone for just £750, they could petition to make you bankrupt. This £750 limit was set by Thatcher’s Government way back in 1986 which suggests this increase to £5000 is long overdue. The court fee to petition to make someone bankrupt is currently £280.
The Government are also raising the debt limit for Debt Relief Orders (DROs) which are essentially a cheaper and less complicated form of insolvency than full bankruptcy. Anyone on a low income and struggling with personal debts of up to £15,000 (subject to meeting eligibility criteria) can apply for a DRO to get those debts written off. From October, DROs will be available to those with debts of up to £20,000. DROs are processed through Approved Intermediaries and not through the courts like bankruptcies. At the moment, the cost of applying for a DRO is £90 which is considerably less than the current fee to make yourself bankrupt which is £545 plus £180 court fees.
Lawgistics members can contact us for advice and help regarding bankruptcy.
