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Posted 10 November 2015
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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 parks@tozers.co.uk

 

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