Bankruptcy In Scotland:
In Scotland the formal name for bankruptcy is actually Sequestration. Like the name, the process of going bankrupt in Scotland is different than in the rest of the UK.
Bankruptcy starts when someone in debt, applies for bankruptcy through a money adviser to the Accountant in Bankruptcy, or is declared bankrupt by one of their creditors through a Sheriff Court. The creditors are the people or organisations who are owed money by the debtor. Subject to certain conditions, a creditor can apply to a sheriff to make a debtor bankrupt or a debtor can apply to Accountant in Bankruptcy to make themselves bankrupt.
Steps To Go Bankrupt In Scotland:
- Step 1: Check you qualify to go bankrupt.
- Step 2: Make sure bankruptcy is the right option for you.
- Step 3: Receive a Certificate for Sequestration.
- Step 4: Complete your Debtor Application Pack & Moratorium.
- Step 5: Get the sequestration fee together.
- Step 6: Apply to the Accountant in Bankruptcy (AIB).
- Step 7: You are declared bankrupt.
Step 1: Check you qualify to go bankrupt
If you live in Scotland and you have over £3000 of unsecured personal debts that you are struggling to pay back, then bankruptcy (sequestation) is a debt solution that can help you to write off debt that you can not afford to pay back.
Before you can apply to go bankrupt in Scotland you need to meet certain criteria:
- You most owe more than £3000.
- You must live in Scotland or have lived in Scotland during the last 12 months.
- You must not have gone bankrupt before during the last 5 years.
Step 2: Make sure bankruptcy is the right option
As well as meeting the above criteria, in order to apply to go bankrupt in Scotland you must also:
- Contact a Money Advisor to check you qualify and their are no alternatives to bankruptcy more suited to your situation.
As the Accountant In Bankruptcy states: "The consequences of bankruptcy are severe and no one should make an application for bankruptcy without being fully aware of the alternatives and seeking advice at an early stage."
If you haven't already received advice from us and are considering how to go bankrupt, you can use our online bankruptcy test tool, which will provide you with a free and confidential assessment of whether you qualify for bankruptcy and what impact it will have on your current situation.
We'll also send you our "Free Guide to Bankruptcy" by email.
Free Online Bankruptcy Eligibility Test
Use our Free Online Bankruptcy Qualification Check to see if Bankruptcy could be the right option for you.
Or, if you’d prefer to speak to us, call our FREE Bankruptcy Helpline on 0800 564 22 11 (freephone, including all mobiles).
Step 3: Receive a Certificate for Sequestration
Once your advisor has confirmed that bankruptcy is your best option, they will issue a Certificate for Sequestration. You can not apply to go bankrupt without a valid certificate.
Step 4: Complete your Debtor Application Pack and Moratorium
Once you have been granted your Certificate for Sequestration, your advisor will help you to complete your debtor application pack and if necessary complete a Moratorium.
A Moratorium gives you a six week period of debt relief during which creditors cannot take any action against
you for debts you owe them. So if you are concerned about what your creditors could do whilst your bankruptcy application is going through, you can request a moratorium.
Step 5: Get the sequestration fee together
The fee to submit your bankruptcy application is £200. There are no reductions or exemptions from paying this.
Step 6: Apply to the Accountant in Bankruptcy (AIB)
Once you have completed your paperwork, and got your bankruptcy fees together, you advisor can submit your application to the Accountant in Bankruptcy (AIB). Once they have received your application, they will aim to process it within 5 working days.
Step 7: You are declared bankrupt
If the Accountant in Bankruptcy accepts your bankruptcy application, you’ll be officially bankrupt.
Your details will then be added to the Register of Insolvencies (ROI).
Check If You Qualify For Bankruptcy?
Our specialists can quickly advise you if you qualify to go bankrupt, or what alternatives are available to you. Simply call the team FREE on 0800 564 22 11.
Alternatively take the online bankruptcy test and check if you qualify.
Going Bankrupt in England, Wales or Northern Ireland?
The above information covers how to go bankrupt in Scotland. For a guide about how to go bankrupt in England, Wales or Northern Ireland see:
How To Go Bankrupt In England & Wales
How To Go Bankrupt In Ireland