Latest insights from our experts

Posted 10 November 2015

Threshold for bankruptcy proceedings increase

Threshold for bankruptcy proceedings increase

 All park owners, both of holiday and residential parks, will probably have experienced at one time or another a customer failing to pay pitch fees or other charges due under the terms of their Agreements.

 There are various steps a park owner can take to seek recovery of any debt owed by a holiday caravan owner or residential mobile homeowner, such as obtaining and enforcing a County Court Judgment and/or petitioning the Court to make the debtor bankrupt.

Previously park owners could potentially have served a statutory demand as the opening step in bankruptcy proceedings where there was a debt of £750 or more. Since 1 October 2015 the debt threshold to serve a statutory demand where the debt is owed by an individual has increased from £750 to £5000. A park owner will, therefore, have to wait until a debt has reached a considerably higher level before serving a statutory demand and threatening bankruptcy proceedings can be considered as method of recovering any outstanding debt.

If you have any queries regarding the recovery of a debt or if you are interested in subscribing to Parklaw contact the Parks team by telephone on 01392 207020 or email


Want to know more?

Request a call back or ask us a question using our quick-contact form.
Alternatively you can call us on 01392 207020.

About the author