The government has announced it will consult on increasing the petition level for creditors from £750 owed. R3 wants the threshold raised to £3,000.
Currently, a creditor can file a petition for bankruptcy if they are owed £750 or more.
“R3 has long campaigned for the rebalancing of the relationship between debtors and creditors because a number of creditors petition for bankruptcy on low levels of debts. The threshold of £750, which was set in 1986, is now outdated,” said Lee Manning (pictured) R3 vice-president and Deloitte partner.
Manning continued: “The Government today acknowledged ‘that to be able to threaten someone with bankruptcy for such a small amount is disproportionate’. We are pleased the Government is listening to R3′s concerns on this issue.”