Sharon McDougall - Updated - 31st January 2024 - 2 minutes to read
If you want to declare yourself bankrupt in Scotland, this is done through a process known as Sequestration. If you’re in serious debt with no hope of repaying your unsecured creditors, you don’t have to wait for a creditor to take legal action against you. You may be able to take matters into your own hands and apply for sequestration (bankruptcy in Scotland) to prevent your situation from worsening and allow to you move on from your current problems.
There are two ways you can apply for your own bankruptcy using the sequestration process in Scotland:
In both cases an approved money adviser or licensed insolvency practitioner (IP) should assess whether or not you’re eligible for bankruptcy, and help you complete the sequestration process.
When completing the bankruptcy form, you’ll need detailed information about your finances, and will have to submit documents in support of your application.
Get a rough indication of what your monthly repayments might be under each of our different debt solutions.
How to apply for bankruptcy via sequestration?
The application form for your bankruptcy can be completed and submitted online, which considerably speeds up the sequestration process, but if you prefer you can print off or request a paper copy.
A Debtor Bankruptcy Application Pack is available from the Accountant in Bankruptcy (AiB) website, with the application fee for full administration being £150. If you’re eligible for the Minimal Asset Process, the fee is reduced to £50. You may not need to pay these fees if you are in receipt of certain state benefits.
Certain sections of the application form relate only to the Minimal Asset Process. Should you declare that you meet the MAP criteria but are later found to be ineligible, you’ll have to use the ‘standard’ bankruptcy process and pay an additional application fee.
If you don’t meet the conditions for entering MAP bankruptcy, your money adviser or insolvency practitioner will issue a certificate of sequestration. This is valid for 30 days, and must be submitted with your application form and sequestration fee to the Accountant in Bankruptcy.
Once the Accountant in Bankruptcy has received an application they usually reply within five working days, but this can be longer if any information or the required documentation hasn’t been provided.
When the application is approved, your assets pass to the control of your trustee whose role it is to sell them for the benefit of your creditors. The trustee must be a licensed insolvency practitioner, and you can enter their details on the application form.
Although you may be discharged from sequestration after 12 months (six months for MAP bankruptcy), the trustee will continue with the process of realising your assets and distributing the proceeds to creditors.
You’ll need to cooperate with the trustee throughout this procedure, so your obligations under sequestration don’t generally end when you’re discharged, unless the administration of your bankruptcy is minimal.
For more information on applying for your own bankruptcy in Scotland, and for assistance in completing the process, call our licensed insolvency practitioners at Scotland Debt Solutions. We specialise in helping Scottish residents to escape debt, and can offer a free same-day meeting to establish your needs.
Borrowing money when you’re already deeply in debt requires careful consideration, and consultation with your trustee, as there are various factors associated with further borrowing in this situatio...
If you’re about to be discharged from a Trust Deed, you may be wondering to what extent your ability to obtain a mortgage has been affected.
If you’ve lost your job, state benefits and tax credits can provide vital financial support to see you through this tough time and help you avoid taking on too much debt while you look for more work...
Why Choose Us
Speak Direct With
A Qualified Adviser
We Don't Operate
5 Offices in Scotland
Ask us About
Fully Regulated Advisors
From a Reputable Firm
Helping Scots Get
Out of Debt Since 1989
We'll give you a call
Our Scottish based team can help advise you on your debt problems.
Our personalised debt report will help you better understand your financial position and see where your money is going.
Arrange a call with an expert advisor at a time to suit you or contact our team via WhatsApp for immediate help and advice.
We can help you with...
Sequestration is the Scottish version of bankruptcy and may be suitable for you if you do not have the money to pay back your debtsFind out More
A Trust Deed involves making a monthly contribution to your debts for up to four years. After this time any remaining debt included in the Trust Deed will not need to be paid.Find out More
A Debt Arrangement Scheme (DAS) lets you pay off your debt through a series of manageable instalments over a reasonable length of time.Find out More
Our Insolvency Practitioners are regulated by ICAS or the IPA and our firm is authorised and regulated by the Financial Conduct Authority
Fees and Information: There are fees associated with our services. These will be fully explained before entering into any of the personal debt solutions referred to on this website. Full details of our fees and how these are charged are fully explained to you prior to you committing to any particular service.