How can I apply for bankruptcy in Scotland?

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:

• Minimal Asset Process (MAP)
• Full Administration Bankruptcy (FAB or standard bankruptcy)

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.

What happens if bankruptcy is approved?

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.