Creditor bankruptcy petition level increased
After a consultation, Business Minister Jo Swinson has announced changes to levels for Debt Relief Orders (DRO) and Creditor Bankruptcy Petitions. The changes will take effect from the 1st October 2015 and introduce the following:-
- DRO limit will increase from £15,000 to £20,000
- The DRO asset limit will increase to £1,000, plus a vehicle (worth not more than £1,000)
- The maximum surplus income a person can have to qualify for a DRO will remain at £50 per month
- The level of minimum debt that can trigger bankruptcy will rise from £750 to £5,000. The bankruptcy creditor petition level was last set in 1986.