Scottish Bankruptcy

Sequestration is the Scottish legal term for bankruptcy. It starts when someone in debt is declared bankrupt in court. It means that the person who is bankrupt has to hand over the things they own to a trustee.

The trustee sells those things to pay off some of the money owed to creditors. The creditors are the people or organisations that are owed money by the debtor. The trustee is the person who handles what the debtor owns for the benefit of the creditors.

If you are sequestrated, it is the duty of the trustee to sell your assets or property and to use the money the trustee gets for them to:

1. pay the costs of managing your sequestration; and 2. pay your creditors as much as possible of what you owe them.

Your trustee may also need you to make some payment from your wages if you have

Call the debt solutions helpline on: 0845 519 6093

Minimum Debt

£1,500 is the minimum debt required for a debtor to apply of their own bankruptcy. £3,000 is the minimum debt a creditor must be able to prove to petition for a debtors bankruptcy.

Time to Make Alternative Arrangements

The court can delay a decision on a creditor's petition for bankruptcy to give a debtor time to agree a repayment plan that avoids the need for bankruptcy, for example Debt Management or a Trust Deed.

Bankruptcy Duration

Reduced from 3 years to 12 months, but can be extended in the event of un-corporative and inappropriate debtor behaviour before or during the bankruptcy.

Bankruptcy Restriction Orders

If the court considers a debtor has been blameworthy and/or reckless in contributing to a bankruptcy, or they are attempting to hide assets - there are consequences.

A Bankruptcy Restriction order (BRO) can be made by the court or the debtor must agree to a Bankruptcy Restriction Undertaking (BRU). A BRU is similar to a BRO but a debtor admits wrong doing and accepts the consequences without the need for a court order.

BRO/BRU’s restrict a debtor's credit and work activities for up to 15 years.

Contributions from Income

The process for obtaining contributions from a debtor's income during bankruptcy is formalised by Income Payment Agreements and Orders (IPA/IPO's), which normally last 3 years.

Student Loans

Student loans are not written off through Scottish bankruptcy.

Can debt solutions help me get out of debt?

YES we can. Everyone’s personal situation is different and each debt solution is different so we need to work out which will best suit your financial needs.

We will complete a FREE 20 minute fact find with you to work out what your earning and spending and this will let us know how much you can afford to pay to your creditors and also which debt solution is best for you to help you get out of debt. You are under no obligation but I am sure you will be 100% happy with what out debt advisors can do for you and we have the lowest debt managenent fees in the industy

We pride ourselves in our friendly, professional approach to finding the right debt solution for every one of our clients, which is honest, confidential and always the ‘best advice’ based on your individual circumstances.

If you would like to speak to one of our friendly, professional debt experts about any of our debt solutions you can either call our debt solutions helpline on: 0845 159 6093 or complete our online contact form and one of our debt advisors will call you back within the hour.

Start you debt free life today! with one of our debt solutions.

Debt Management | Individual Voluntary Arrangement | Protected Trust Deed | Bankruptcy

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