How bankruptcy works
Before you can apply for bankruptcy (sequestration) you need to:
- Owe more than £1,500 (increasing to £3,000 from April 2015)
- Be living in Scotland or have lived in Scotland sometime during the last year
- Not have been made bankrupt in the last 5 years
You can apply if you’ve received one of the following:
- A decree and a ‘charge for payment’ served on you and the 14 days allowed for payment have passed without you making a payment
- A ‘summary warrant’ to recover rates or taxes and an attachment or an exceptional attachment order has been made against items you own and the 14 days allowed for payment have passed without you making a payment.
- A certificate for sequestration has been issued from an approved debt advisor.
Because we’re approved debt advisors we can give you a certificate for sequestration as evidence that you can’t afford to pay your debts.
The fee for bankruptcy (sequestration) is £200. There are no exemptions or reductions so the full amount needs to be paid.
Bankruptcy normally lasts for a year. During this time you can’t borrow any more credit and you must let the Accountant in Bankruptcy know if your situation changes. You may have to sell valuable assets, but you can keep the things you need for day-to-day living.
Bankruptcy (sequestration) advice
Making yourself bankrupt is a big step to take and requires expert debt advice.
If you’re considering bankruptcy, you can use our online Debt Remedy tool, which will provide you with the best solution to your debt problem in just 20 minutes. Or, if you’d prefer to speak to us, call our free Helpline on 0800 138 1111 and speak to one of our Scottish debt advisors.