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LATEST NEWS & EVENTS Personal insolvency limit to increase  The petition debt level for creditors acting in personal insolvency cases is to be increased, the government has indicated. A consultation on raising the threshold from the current level of £750 will be held as part of wider reforms to laws affecting people using an insolvency lawyer. The government appears to be behind increasing the limit, noting that "to be able to threaten someone with bankruptcy for such a small amount is disproportionate". R3, the Association of Business Recovery Professionals, welcomed the proposal, suggesting that £3,000 would be more appropriate. "The threshold of £750 which was set in 1986 is now outdated," remarked R3 president Frances Coulson. Rick Munro, insolvency partner at Lamport Bassitt in Southampton, said: "Whilst the proposed increase is good news for debtors, it will remove for creditors a powerful weapon to recover debts below £3,000. "The threat of a bankruptcy petition is often more effective in extracting payment than the more conventional methods of enforcment such as charging orders on properties." In addition to this reform, the government said it will launch a consultation on how to make it easier for bankrupts to obtain a basic bank account. Protocols for Debt Management Plans may be introduced, while the government has also said that the Money Advice Service should be at the heart of coordinating debt advice. Posted by Alex McLean 
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