New Insolvency Rules Come Into Force
A leading commercial legal firm on Teesside is advising people to be aware of new rules regarding bankruptcy and insolvency which come into force today.
Stockton-based Endeavour Partnership are experts in the field of corporate recovery and insolvency, as well as issues relating to corporate and commercial law, and are already dealing with a number of issues regarding the change in the law.
Starting today, the minimum level of debt for which an individual can be made bankrupt is to increase from £750 to £5,000 – the first increase of its kind since the Insolvency Act was introduced in 1986. Although some campaigners welcome the move as it could prevent creditors making people bankrupt for “unreasonably small debts”, the new rules could make it more difficult for people to pursue trades people, landlords or others who are steadfastly refusing to pay what they owe.
Lee Bramley, a Partner and Head of Corporate Recovery and Insolvency at Endeavour Partnership commented:
“The rise in the bankruptcy petition threshold was expected although £5,000 is far higher than first thought. It is right that it should be increased as £750 was an entirely inappropriate level and the protection it offered people in financial trouble had been steadily eroded by inflation over the last three decades. The rise in the petition threshold will require people who are pursuing unpaid sums to look at other options for the pursuit of low value debts. While a bankruptcy petition is not always the most proportionate tool for this, it’s very important that the insolvency regime maintains a balance between protecting the interests of both debtors and creditors."
Endeavour Partnership was launched in 1999 and has grown it's team to 44 staff at its base on Teesdale in Stockton.