Bankruptcy creditor petition threshold increases from 1 October 2015
With effect from 1 October 2015, the threshold for a creditor to petition for a debtor’s bankruptcy increases from its current limit of £750 to £5,000. This is the first change in the limit since 1986.
A creditor whom is owed £750 or more can currently serve a Statutory Demand for the debt (providing it is not disputed), followed by the issuing a bankruptcy petition at Court if the debt is not paid. Extensive consultation was undertaken by the Government regarding the increase which concluded that, petitioning for bankruptcy for such a minimal value debts (currently £750) was, disproportionate.
There are no similar proposals at present in respect of raising the threshold of £750 for issuing winding up petitions against companies.