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Monetary Threshold for Bankruptcy

Comment 1st July 2010

The £750 threshold at which creditors may institute bankruptcy proceedings should be raised to £3000.

Why does this matter?

There are adequate remedies in the county court to deal with low value personal debt.  It is costly to the taxpayer to involve the Insolvency Service in low value bankruptcy matters which are intensive and require considerable staff involvement.  It is also invidious to involve debtors with small debts in such a draconian process where other remedies (for example administration orders or their equivalent) provide effective mechanisms for payment and are far less costly in civil service staff time.

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