lowells bankruptcy pertition *** dismissed ***

[Gaston Grimsdyke]

Absolutely agree, stat demands should not be used as a debt collecting tool. If a stat demand is served, the creditor ought to be prepared to go all the way through with bankruptcy proceedings. If a creditor really wants to spend 2K making someone bankrupt then that's their prerogative, it's an entirely legitimate route to take. It's those who serve stat demands with no intention of ever issuing a bankruptcy petition that ought to be outlawed.

 

The government won't change the law on bankruptcies, it's a nice revenue stream for them. Even better when debtor's petitions become a purely administrative process with no requirement to go to court.

[PGH7447]

They should be made to fund the cost up front on a non refund basis, before they issue the stat demand, that would curtail their little [problem]

[ScarletPimpernel]

I think that the amount a creditor can begin the bankruptcy process for should be considerably higher than £750. Having it this low makes issuing stat demands as a debt collection tool attractive to the grubby end of the debt industry (i.e. all of them). If it were, say £5k, they'd have to think twice. The current situation is almost as anachronistic as the bailiff system.

[robcag]

I think that the amount a creditor can begin the bankruptcy process for should be considerably higher than £750. Having it this low makes issuing stat demands as a debt collection tool attractive to the grubby end of the debt industry (i.e. all of them). If it were, say £5k, they'd have to think twice. The current situation is almost as anachronistic as the bailiff system.

 

Good points there SP.

 

Further to your suggestion of £5K, perhaps the level should be linked directly to the Small Claims limit.

 

Rob