A recent review of personal insolvency has led to the Minister for Employment Relations, Consumer and Postal Affairs to propose raising the threshold for debt for which creditors may petition for bankruptcy.

Currently for a debt of at least £750, a creditor may make their debtor bankrupt. This amount was set in the Insolvency Act 1986 and has not been amended since.

Question: Is it true that I could be imprisoned for failing to pay a debt? That sounds like something out of a Dickens novel, not something that could really happen in 2010.

Answer: Yes, in some circumstances you can be sent to prison for failing to pay a debt. For example, if you fail to pay child maintenance or taxes despite having the means to do so, the relevant enforcement authority can apply for a ‘judgment summons’ requiring you to pay. If you fail to comply with the judgment summons, the court can send you to prison for up to six weeks – essentially on the ground that by failing to comply with the order you are in contempt of court. Read this article to learn more: When you can be sent to prison for your debts (FindLaw UK).