There are only a few occasions in the lifetime of a business, where the opportunity fills you with both excitement and caution in equal measure.

These are the times when only enthusiastic expertise will Dootsons

Minimum limit for creditor’s bankruptcy petitions rises to £5,000

On 1st October 2015, the rules relating to bankruptcy petitions were changed. For many years, a creditor owed as little as £750 was entitled to bring a bankruptcy petition for an undisputed debt. The minimum limit has now been increased to £5,000.

On 1st October 2015, the rules relating to bankruptcy petitions were changed. For many years, a creditor owed as little as £750 was entitled to bring a bankruptcy petition for an undisputed debt. The minimum limit has now been increased to £5,000. The relevant legislation is the Insolvency Act 1986 (Amendment) Order 2015 (SI 2015/922) which amends section 267(4) of the Insolvency Act 1986.

This will affect those who may want to issue a statutory demand or bankruptcy petition for a sum owed between £750 and £5,000, as they will no longer be able to do so.

The limit for companies remains unchanged. A company that fails to pay a statutory demand for a sum exceeding £750 is deemed unable to pay its debts, which is one of the grounds on which a winding up order may be made.