Creditor bankruptcy if you live in Scotland
A creditor can make you bankrupt in Scotland if you owe them more than £3,000.
Two or more creditors can club together if the amounts you owe are under these limits, but this is rare. For example, if you have two debts of £2,000, the creditors could apply for your bankruptcy together so the total debt passes the £3,000 minimum.
If you live in Scotland, a creditor can only petition for your bankruptcy if they can prove your ‘apparent insolvency’. To do this they will send you one of the following documents:
- A charge for payment giving you 14 days to pay the debt, or
- A statutory demand giving you 21 days to pay the debt
You can also be made bankrupt if you set up a protected trust deed to repay your debts, but it failed because you didn’t make the payments.
If you don’t pay the debt in this time you’ll receive a ‘warrant to cite’ which gives you a date for a court hearing.