Bankruptcy probability calculator

qvorum

Hello guys.

A few years back I took out a 12K loan from a bank for an educational course (student finance was not sponsoring the program). It is a steep loan - interest is at 9% and the repayment is at 450 per month. I have about 8K outstanding on the loan.

I lost my job a few months ago and sadly firms are not really hiring in my field (mostly pre-Brexit freeze, that might continue longer than expected). Even before that, I wasn't making that much so repaying the loan was a struggle.

Now, ideally I will manage to pay it back, or at least figure out another repayment schedule with the lender.

However, out of curiosity, I was wondering what the chance is of them declaring me bankrupt. The minimum amount the creditor must be owed is 5K. However, this is an expensive process - paying the fees of the official receiver alone is 3K. There are also court and legal fees. It makes no commercial sense to spend so much money in chasing 8K, when you will likely get pennies on the pound (as I have almost no assets!).

So my question is: in your experience, what is the lowest debt amount that will induce a creditor to petition the court for bankruptcy?

Thank you.

JCS1

Depends on the creditor.


Some, such as HMRC, will make the person bankrupt in order to close the file.


Others will to set an example.

Minkym00

If you have assets that could pay off the debt, costs and fees then they could petition for you bankruptcy. If you don't it would be an expensive punt on their part. They are more likely to go down the CCJ and enforcement (i.e. high court bailiffs) route first.

fatbelly

qvorum wrote: »

So my question is: in your experience, what is the lowest debt amount that will induce a creditor to petition the court for bankruptcy?

Thank you.

In percentage terms there are very few statutory demands issued and that question is not the relevant one. It's Who is the creditor?

HMRC do do them. A local solicitor (if you owed money to them) might well. A private individual might.

But if we're talking Barclays Partner Finance or similar it's near zero probability.

I'm a paid debt adviser with Cit A and I can't remember the last time I saw one - maybe 10 years ago.