Creditors Beware: Petition Deposits to Rise
- AuthorKieren Palfrey
On 1 November 2022 petition deposits, the amount paid to pursue bankruptcy proceedings against an individual or winding up proceedings against a company, will rise by more than 50%.
- The deposit paid when pursuing bankruptcy against an individual is set to rise from £990 to £1,500
- The deposit paid when pursuing a winding up proceedings against a company is set to rise from £1,600 to £2,600
These petition deposits are in addition to the £302 court fee which must be paid to issue proceedings as well as any process server and legal costs that you will incur.
It is more important than ever for creditors to take stock of their debts and act quickly.
Before issuing proceedings, it is vital to check the particular debts are eligible for a petition.
The threshold for individual bankruptcy is a debt of at least £5,000. For company winding up, it’s £750. You might also need to serve a statutory demand before commencing insolvency proceedings so it is imperative for you to seek specialist advice from a solicitor before pursuing court proceedings.
Insolvency proceedings will not suit all cases and there are several other options available for dealing with debtors which may be more suitable to your individual circumstances.