Bankruptcy and Debt Relief Order Thresholds Increased

Bankruptcy

From 1st October 2015 the bankruptcy threshold increased from £750 to £5,000.  Whilst this will undoubtedly be welcomed by debtors and accordingly the number of bankruptcies will reduce, the likelihood is that more small business may go out of business because they can no longer use the threat of bankruptcy to recover smaller debts. 

In addition, the cost of bankruptcy proceedings will also increase from 16th November 2015.  For a creditor to issue a Bankruptcy Petition the Court fee will increase from £280 to £355. In addition, Official Receiver’s deposits will increase by £140. 

Debt Relief Order (DRO)

Debt Relief Orders are a less drastic alternative to bankruptcy.  Under a DRO a debtor will agree to pay instalment payments, usually over a 12 month period, after which the debtor will be ‘discharged’ and the balance of any debts included in the DRO will be written off.  Debts which are included in a DRO also provide protection from creditors pursuing Court action.  

DROs are now available to those who:

  • owe less than £20,000
  • have spare income of less than £50 per month
  • do not own assets of more than £1000
  • have lived or worked in England and Wales within the last 3 years
  • have not applied for a DRO within the last 6 years
  • are not involved in any other insolvency proceedings at the time the application is made 

If  DRO is made, the debtor will be unable to:

  • borrow more than £500 without telling the lender about the DRO
  • act as the director of a company
  • create, manage or promote a company without the court’s permission
  • manage a business without telling those they do business with about the DRO

For further information on the threshold increases please contact Jackie Jordan


A Fellow of the Chartered Institute of Legal Executives, Jackie’s legal career has always relied on calmly supporting clients through processes which are unfamiliar and potentially stressful.

For over 30 years, she worked in Debt Recovery, winning awards for her handling of complex litigation and extensive experience in advising on commercial and consumer matters from pre-legal action and the issuing of proceedings, through to enforcement of Judgments, bankruptcy and winding up petitions. 

In 2017, due to the increasing demand of Verisona Law’s conveyancing services, Jackie was invited to move departments within the firm and join its Residential Property Team.

‘We are dealing with increasingly involved property matters and needed someone who had a proven track record successfully helping clients through legal processes,’ explains Danielle Allday, Head of Residential Property. ‘I was delighted when Jackie agreed give us the benefit of her expertise.’

‘I am thoroughly enjoying the opportunity to diversify my legal skills and get to work with and for a wide range of new people,’ says Jackie. ‘Whether it be matters of property, financial affairs or both, the most important thing is to provide clients with clarification, guidance and, where needed, reassurance.’

  • 1991 Debt Recovery Manager at Blake Lapthorn
  • 2003 Awarded Credit Today Litigation Specialist of the Year
  • 2011 Joined Verisona Law as Debt Recover Manager
  • 2017 Joined the Conveyancing Team at Verisona Law

Conveyancing

  • Purchase and Sale of Residential Property, both Freehold and Leasehold.
  • Lease Extensions
  • New Builds
  • Remortgaging
  • Shared Ownership
  • Key Workers
  • Help to buy schemes
  • Acting for management companies
  • Right to manage
  • Transfer of Equity
  • Deeds of Variation or Rectification
  • Equity Release Schemes

Debt Recovery

  • Commercial and consumer claims from the issue of proceedings to Judgment
  • Enforcement of Judgments by Writ of Fi Fa, Orders to attend Court for questioning, Attachment of Earnings, Third Party Debt Orders, Charging Orders and Orders for sale
  • Bankruptcy and winding up proceedings
  • Debt purchase

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