Apply for bankruptcy
We can help you apply for bankruptcy in Scotland. Call us on 0161 667 2599 and a friendly advisors will talk you through what's involved. Or request a callback on the right to find out if any other solutions could help.
Bankruptcy could help you get free of unaffordable unsecured debts. If you simply can't afford to repay everything you owe, it could freeze all interest and payments on your unsecured debts and write off what you can't afford after a year.
However, bankruptcy is also a serious step with long-standing consequences – and it could cost you your home if you own it.
How bankruptcy works
To apply for bankruptcy, you'll have to pay a £200 application fee (£90 for MAP) to the Accountant in Bankruptcy (AiB) and fill in the relevant forms. We can talk you through this process and explain everything else you'll need to do.
If your bankruptcy is approved, your unsecured debt payments are frozen - along with any interest and charges on those debts. Rights to your 'assets' - including your home (if you're a homeowner) and your car (if it's worth more than £3,000) will be handed over to a Trustee, who oversees the bankruptcy. They will usually sell these assets to help repay your lenders.
You will normally be 'discharged' from bankruptcy after a year (6 months for MAP), at which point any remaining unsecured debt is written off. However, if you can afford it you may be required to make affordable monthly payments to your lenders for up to four years.
It's important to know that your credit rating will be affected for a minimum of six years and your bankruptcy details will be added to the publicly available Register of Insolvencies. Bankruptcy should always be considered a last resort, once you've considered all your other options and decided they're not right for you.Find out more about how bankruptcy works here.
Who can apply for bankruptcy in Scotland?
You can apply for your own bankruptcy in Scotland if:
- You must owe at least £1,500 in unsecured debt (loans, credit cards etc) AND
- You have not been bankrupt in the last 5 years, AND
- You have a “Certificate for Sequestration” from an authorised person (such as an Insolvency Practitioner or Money Adviser) confirming you cannot pay your debts as they become due, OR
- You enter into a Trust Deed which is rejected by your lenders (i.e. it does not become protected) AND
- You can afford the application fee to the Accountant in Bankruptcy (AiB)
- However, if you have few valuable assets and have no spare money to make any payments towards your unsecured lenders once you’ve paid your essential bills and between £1500 and £17,000 of debt you may be able to apply for bankruptcy through MAP.
Is bankruptcy right for me?
Bankruptcy should always be considered a last resort, once you've considered all your other options and decided they're not right for you. However, if you really can't afford to repay your debts, bankruptcy could be a good way of wiping the slate clean and getting back on top of your finances.
Do bear in mind that going bankrupt could prevent you from holding certain job roles, such as managing director of a company, a judge, or a position in the police or military.
Also consider that like most debt solutions, bankruptcy will affect your credit rating for six years or more after it has been agreed.
If you're not sure whether bankruptcy is right for you, request a callback for a quick recommendation on the best way to tackle your debts. You may also want to talk to one of our friendly advisors about your options - get in touch on 0161 667 2599.