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Find out whether you qualify for bankruptcy

Debt Solutions»Bankruptcy»Do I qualify for bankruptcy?

Do I qualify for bankruptcy?

If you really can't afford to repay everything you owe, bankruptcy could write off the unsecured debts left after repaying as much as you realistically can.

You may qualify if you have at least £1,500 of unsecured debt (personal loans, credit cards etc.) that you simply can't afford, and can't find a more appropriate way to tackle your debts.

If you owe less than £17,000, have no spare money to make any payments towards your unsecured lenders once you’ve paid your essential bills and have few valuable assets, you could qualify without lender approval - through MAP .

You can get an idea of whether bankruptcy is right for by requesting a callback - or call our experts on 0161 667 2599.

Who can qualify for bankruptcy?

The main criteria for Scottish bankruptcy are as follows:

  • 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),
  • You can afford the application fee to the Accountant in Bankruptcy (AiB)

If you meet these criteria, it's very likely that your application will be accepted. However, it could be rejected if it appears that another solution may be more appropriate.

Remember that bankruptcy will affect your credit rating for at least six years from the day it starts, and will also prevent you from holding certain positions (such as a company director or a judge).

How much does bankruptcy cost?

As well as the £200 application fee (£90 for MAP) we've already mentioned, you may be required to make affordable payments towards your unsecured debts for up to four years once your bankruptcy has been agreed. If you can't afford to make these payments, you won't have to.

If you enter bankruptcy through us, we will take a fee from your monthly payments. This won't affect how much you pay, as you'll only ever be expected to pay what you can comfortably afford. Find out more about our fees.

What if bankruptcy isn't right for me?

If it turns out that bankruptcy isn't the best option for you, don't worry. There are various debt solutions available to people in Scotland, and we will do all we can to make sure you find the right way of tackling your debts.

Another debt solution we provide is a protected Trust Deed.

For a personalised guide to the solutions that could help you, request a callback. Alternatively, talk to one of our expert advisors on 0161 667 2599.

Bankruptcy advice

Could we have a joint Trust Deed?

If you have joint debts that you can't afford, you could both enter into a Trust Deed. Although joint Trust Deeds don't exist, both your Trust Deeds will take your joint debts into account.

Read more