Personal bankruptcy is a serious situation but for people with unmanageable debts it provides a straightforward legal solution to resolve their debt problems. If your debts are at a level where it is unlikely you can repay them in a reasonable time period then you should consider bankruptcy as a possible debt solution.
We would always advise however that you seek professional debt advice and fully assess the options and alternatives before making a decision. E-P Debt specialises in bankruptcy debt advice and the advice provided is practical, confidential and free.
Bankruptcy in Scotland
Bankruptcy in Scotland is known as sequestration and it has its own set of rules and requirements. The law has recently changed to make the process easier and more accessible to people with serious debt problems.
You must first of all meet the criteria to qualify for bankruptcy. The key criteria are as follows:
Your total debts must equate to £1500 or more
You must not have been made bankrupt in the last 5 years
You have to satisfy one of the following criteria:
One of your creditors will agree to you going bankrupt
You meet the legal criteria of being apparently insolvent which means you can show you cannot pay your debts when due and a creditor must have gone to court over a debt you owe.
Applying for bankruptcy
You can apply for bankruptcy yourself by making a formal application to the Accountant in Bankruptcy which is the legal body who administer the bankruptcy process. You must use the correct application format and the type of debtor application will depend on your circumstances.
The application fee is £200 and if you apply directly to the Accountant in Bankruptcy then they become your Trustee.
Many people prefer to take independent advice and appoint a licensed insolvency practitioner to act on their behalf and in these circumstances the insolvency practitioner undertakes the whole process for you and they become the Trustee.