At the moment a debtor has to owe £750 or more before he can be declared bankrupt, however the Government is considering proposals to increase this amount which has been in force for the last 30 years or so.
In addition the Government are looking to improve Debt Relief Orders (DRO) which were introduced 5 years ago for those debtors who owe less than £15,000 and have no way of paying their debts off.
Business Minister Jo Swinson has said that “bankrupting somebody for £750 is no longer fair or reasonable, especially when there are often alternative cheaper ways for those owed money to seek repayment”.
Jo Swinson also went on to say that she wants to “ensure that DROs are meeting the objective of helping those financially vulnerable with a low cost way out of problem debt”.
Should they go ahead these proposals will ensure that a more realistic level of debt is owed before action can be taken to petition for an individual’s bankruptcy.
It is important for anybody facing financial difficulties, whether personally, directors of limited companies or partnerships, to seek advice from a licensed insolvency practitioner as soon as possible.
To take advantage of our free consultation, please telephone Stella Flemmings on 01377 257788, 01724 230060 or 01904 520116 and she will make you an appointment with one of our insolvency professionals at our Driffield, Scunthorpe or York offices.
Redman Nichols Butler has had a York office for nearly six years now and specialises in advising SME businesses in York and North Yorkshire. The Redman Nichols Butler York office address is Westminster Business Centre, Nether Poppleton, York, YO26 6RB.
Redman Nichols Butler has had a Driffield office for 16 years now and specialises in advising SME businesses in East Yorkshire. The Redman Nichols Butler Driffield office address is Maclaren House, Skerne Road, Driffield, East Yorkshire, YO25 6PN.
Redman Nichols Butler has had a Scunthorpe office for nearly 4 years now and specialises in advising SME businesses in Scunthorpe, Grimsby and all over North East Lincolnshire. The Redman Nichols Butler Scunthorpe office address is Suite 8b, Normanby Gateway, Lysaghts Way, Scunthorpe, DN15 9YG.