A Bankruptcy Petition is usually presented by an individual, a creditor or a supervisor of an Individual Voluntary Arrangement (IVA).
The first stage is a Debtor’s Bankruptcy Petition, a Statutory Demand or a Certificate of Non Compliance. If you do need advice about whether or not you should present you own petition, or receive a Statutory Demand or fail to comply with the terms of your IVA it is important to act quickly. Delay will only compound your problems.
From October 2015, the threshold for creditor’s bankruptcy petitions will increase from the current limit of £750 to £5,000. Also, the maximum level of debt in respect of which a Debt Relief Order (“DRO”) can be obtained will increase from £15,000 to £20,000.
In order to collect a debt of less than £5,000, a creditor will have to obtain judgment via the small claims court. If someone owes you more than £5,000 after October 2015 then you may wish to issue a Statutory Demand, but it is important that you obtain advice first. All the T’s must be crossed and the I’s dotted when you apply for a Bankruptcy Order or you may end up losing further money and causing extra delays. We can assist you through the process and advise you regarding alternative procedures for pursuing your debts.