Local councils and housing associations will be hit hardest by an imminent hike to the threshold for a creditor’s bankruptcy petition, an accountancy firm has claimed. It was announced in January that from October 2015, creditors must be owed a minimum of £5,000 before they can start bankruptcy proceedings. The current minimum is just £750. Moore Stephens sis now claiming that the sharp increase in the threshold will make it far harder for creditors to recover debts. Figures released to the firm by the Insolvency Service show that 15 per cent of bankruptcy orders were made for debts of less than £5,000 last year – that’s 785 of the 5,235 total creditor petitions for bankruptcy.....Read more here