Bankruptcy Petition amount

On 1 October 2015, the minimum undisputed amount which a creditor needs to be owed by an individual to entitle them to present a bankruptcy petition increased from £750 to £5,000.

As such, if an individual owes less than this amount to a creditor, they cannot be made bankrupt. However, this does not prevent a creditor from trying to recover those monies in other ways, such as county court proceedings.

However, creditors must be aware that the £5,000 minimum threshold has to relate to an undisputed debt. Before they can present a bankruptcy petition.

If, for example, an individual debtor owes £6,000 to a creditor in relation to four invoices of £1,500 each, but disputes the fact that one of those invoices is actually owing to the creditor, then the creditor may not be able to present a bankruptcy petition in respect of the debt, if the debtor can prove that there is a substantial dispute in relation to the invoice.

Similarly, if the debtor admits that the sum (in excess of £5,000) is owed to the creditor, but believes they have a counterclaim or right to set-off the debt against sums they are owed by the creditor, then again, the creditor may not be able to present a bankruptcy petition in these circumstances. The counterclaim or set-off has to be genuine however.

The minimum undisputed amount which a creditor needs to be owed by a company to entitle them to present a winding up petition remains at £750.

Contact expert bankruptcy petition solicitors now

Our expert team of bankruptcy petition solicitors at Francis Wilks & Jones are here to help you with your bankruptcy petition questions. Our knowledge of bankruptcy orders is second to none having dealt with thousands of them over the years. Our practical daily experience and legal expertise means that we can assist whatever the nature of your bankruptcy petition claim.

Contact one of our expert friendly bankruptcy petition lawyers now for your confidential consultation.