| Bankruptcy Level to Rise to £3,000 |
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The government has proposed that the bankruptcy level threshold should be raised from £750 to £3000. Creditors can currently petition to make someone bankrupt for a debt of £750 but this figure has not changed since the introduction of the Insolvency Act 1986. The government considers that to threaten bankruptcy for a sum as low as £750 is disproportionate. A small business owed a sum close to £3000 might be concerned that a powerful sanction could be removed from the armoury of debt recovery. Businesses will need to participate in the consultation if they wish to preserve their current options at a time of extreme financial uncertainty. |
