How much does bankruptcy cost?
In order to apply for sequestration, you must pay a £150 fee to the accountant in bankruptcy, which has been reduced from £200, at least until the end of September 2020. This fee may be reduced to £0 for those receiving certain benefits, including when those benefits are not your sole income.
How long does bankruptcy last?
Sequestration normally lasts for a year. During this time you must not borrow any more credit and you must inform the Accountant in Bankruptcy (AiB) of any change in circumstances. AiB are responsible for administering the process of personal bankruptcy in Scotland.
You may have to make a contribution from your earned income to your bankruptcy. This will be determined after your income and expenditure has been checked and will normally be for four years. If your circumstances change you can ask the AiB to review this.
What debts are written off in bankruptcy?
Most debts are written off by bankruptcy. Some debts will not be written off, including student loans, criminal fines, fraudulent debts and child maintenance arrears.
Do I have to sell any assets?
There’s a chance that you’ll need to sell valuable assets such as a vehicle or your house. You can keep the things you need for day-to-day living.
Will my details be registered anywhere?
Your details will be added to the Register of Insolvencies (ROI), for a period of five years.
Could sequestration affect my job?
Bankruptcy may have implications for your job. You won’t be able to act as a company director for instance. Usually, you can check the details of your employment contract to find out where you stand. If you’re concerned that bankruptcy may affect your employment, you must let your debt advisor know.