Check If You Qualify

How can I apply for bankruptcy in Scotland?

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.

Debt Calculator

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.

How can I complete the sequestration form for bankruptcy?

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.

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.

facebook colour icon twitter colour icon linkedin colour icon messenger colour icon whatsapp colour icon email colour icon
Sharon McDougall Square

Sharon McDougall

Manager

Other Articles

Can I borrow money whilst I’m in a Trust Deed? Can I Borrow Money

Can I borrow money whilst I’m in a Trust Deed?

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...

Your guide to getting a mortgage after a Trust Deed Guide to get a mortgage

Your guide to getting a mortgage after a Trust Deed

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.

What is an inhibition court order in Scotland? Court Order

What is an inhibition court order in Scotland?

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...

About

Why Choose Us

Usp Discussion

Speak Direct With

A Qualified Adviser

Headset

We Don't Operate

Call Centres

Usp Location

5 Offices in Scotland

National Coverage

Usp House

Ask us About

Home Visits

Usp Award

Fully Regulated Advisors

From a Reputable Firm

Usp Hand Heart

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.

Here at Scotland Debt Solutions we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See our Privacy Policy.

Tools

Useful Tools

Personalised Debt Report
Usp Planner

Personalised Debt Report

Our personalised debt report will help you better understand your financial position and see where your money is going.

Debt Report
Instant Scheduled Call & WhatsApp
Headset

Instant Scheduled Call & WhatsApp

Arrange a call with an expert advisor at a time to suit you or contact our team via WhatsApp for immediate help and advice.

Arrange Callback
Find a Local Office
Usp Signpost

Find a Local Office

We have five offices located across Scotland. Find your nearest one here.

Find an Office

OUR SERVICES

We can help you with...

Sequestration

Sequestration

Sequestration is the Scottish version of bankruptcy and may be suitable for you if you do not have the money to pay back your debts

Find out More
Trust Deeds in Scotland

Trust Deeds in Scotland

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
Debt Arrangement Scheme (DAS)

Debt Arrangement Scheme (DAS)

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
Business Debts
Icon Briefcase

Business Debts

Whether you are a sole trader or a limited company director, we can help you work through your current financial problems including money owed to HMRC

Business Debts

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.

ICAS Insolvency Practitioners