Bankruptcy threshold level increased to £5000

 

1 October 2015

On 1 October 2015, the Insolvency Act 1986 (Amendment) Order 2015 amended section 267(4) of the Insolvency Act 1986.

The effect of this is that the threshold debt needed for creditors’ bankruptcy petitions (the bankruptcy level) increased from £750 to £5,000.

This has had a significant impact for

  • Debt Recovery Solicitors,
  • Credit Controllers,
  • Commercial Landlords collecting outstanding services charges.
Bankruptcy threshold level increased to £5000

The Problem

Prior to this change the statutory demand personally served on the Company or the Proprietor had a great impact on the debtor and yielded many a good result for the creditor. The debtor paid rather than face the prospect of bankruptcy proceedings.

It was an instant solution, relatively cheap, and no waiting for the court.

If you issue a claim form against a company with a debt of £3000 the issue fee alone is £205. The claim is posted out by the county court. You don’t even know if they are still trading or even if it ever got there.

Where a debt is owed and the business has not responded to reminders and collection letters a fast solution is required.

The Solution

Bankruptcy threshold level increased to £5000

One of our Certificated Enforcement Agents (Bailiffs) will visit the Business and insist on speaking with a director or senior manager.

Imagine a uniformed CEA walking into the company reception. It has an impact.

Once the uniformed Bailiff gets to speak to the most senior person available they can ask for the immediate settlement of the debt.

If payment is not achieved the Bailiff will serve a letter before action giving 7 days notice of a claim being issued.

The Bailiff can also take photographs of any assets, vehicles etc. They can also confirm the business is trading, and attempt to gain any useful pre ligation information.

This should redress the balance and have a similar impact if not better than serving a statutory demand.

If this approach did not yield a result, and the information supported it, a claim can then be issued in the county court with a better idea of how successful this would be.

Successful Trial

Enforcement Bailiffs has recently conducted a trial of this new approach in London to collect on commercial accounts. By sending our uniformed Certificated Enforcement Agents (Bailiffs) we have had a great success rate.

For help with debt collection contact Enforcement Bailiffs.

We can help

Enforcement Bailiffs Ltd has over twenty five years experience in the execution of warrants and collection of commercial debt, especially in the commercial property sector.

London & South
0208 090 2439
Midlands & Wales
01733 306 462
Northern England
01325 526 127

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