R3 have released a new article confirming that the average indebted British adult owes over £5,500 – it can be accessed here.
Based on this article, it would appear that when the new petition limit comes into force there are a number of different age groups who could neither make themselves bankrupt or be made bankrupt, given that their debts are below the proposed limit of £5,000.
While a debt relief order may be an option in some cases, given the restriction on the level of assets it is not always the case. Individuals wanting to consider bankruptcy with lower debts (who may have some assets or own a property with little equity) may want to consider taking action now before the new limit applies. Creditors who want to act against someone with debts of less than £5,000 may also want to consider acting sooner rather than later.
For further advice regarding debt or insolvency, please contact Lynn Marshall on 0191 285 0321 or email email@example.com.