Legislation that can force people owing as little as £750 into bankruptcy is to be reviewed LEGISLATION that can force people owing as little as £750 into bankruptcy is to be reviewed. The threshold at which a creditor can petition for bankruptcy has remained unchanged since the Insolvency Act came into force in 1986. Announcing an autumn consultation on raising it to £3,000, Business Minister Ed Davey said: “To be able to threaten someone with bankruptcy for such a small amount is disproportionate.” James Falla, of beatmydebt.com, said: “This would stop the threat of bankruptcy being used as a debt collection tool where it is clearly not appropriate to do so. ” The number of personal insolvencies has risen sharply since 2005 and hit a record 135,089 in England and Wales last year. Numbers are likely to climb even higher this year. Britons collectively owe £1.453trillion.UK NEWS
BID TO CURB MISUSE OF BANKRUPTCY
By Kirsty Buchanan
Sunday July 24,2011
Sunday, 24 July 2011
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