It seems odd that in this day and age, a person can be made bankrupt for owing as little as £750. Can anyone tell me when this limit was set and are there any proposals to increase it?
- posted
15 years ago
Bankruptcy Limit
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- posted
15 years ago
Having made further inquiries, it would seem that the bankruptcy limit in Scotland has been increased to £5k under the Bankruptcy (Scotland) Act 1985, Section 5(4) as amended by the Bankruptcy and Diligence etc. (Scotland) Act 2007 Section 25 (6).
Perhaps someone can tell me what is meant by "contingent or future debts"?
"(4) In this Act ?qualified creditor? means a creditor who, at the date of the presentation of the petition [or, as the case may be, the date the debtor application is made], is a creditor of the debtor in respect of liquid or illiquid debts (other than contingent or future debts [or amounts payable under a confiscation order]), whether secured or unsecured, which amount (or of one such debt which amounts) to not less than [£3,000] or such sum as may be prescribed; and ?qualified creditors? means creditors who at the said date are creditors of the debtor in respect of such debts as aforesaid amounting in aggregate to not less than [£3,000] or such sum as may be prescribed; [and in the foregoing provisions of this subsection ?confiscation order? [means a confiscation order under Part 2, 3 or 4 of the Proceeds of Crime Act 2002]]."