How to Declare Yourself Bankrupt in Scotland

Written by dirk huds Google
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How to Declare Yourself Bankrupt in Scotland
There are limits on how much money you must owe before being able to declare bankruptcy in Scotland. (money money money image by swall5432 from

Declaring bankruptcy in Scotland is known as sequestration. The legal process differs from that in the rest of the UK. Individuals declaring bankruptcy in Scotland must meet certain criteria in their personal circumstances and the debt they owe. Previously, people could only be declared bankrupt after legal action by a creditor (someone to whom money is owed). But a law change in 2008 meant that an individual in debt could apply for sequestration themselves.

Things you need

  • Debt of over £1,500.
  • Received a summary warrant for an outstanding debt (or debts) on which no money has been paid.

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  1. 1

    Apply for bankruptcy to a Sheriff's Court. You must meet the criteria outlined in "Things You'll Need" and submit a petition to the Court.

  2. 2

    Declare all of your debts and all of your financial and assets holdings. Failure to do so may result in further legal processes being applied when undeclared holdings are discovered. If you have a low income and no serviceable assets, you will be classified as Low Income Low Assets (LILA), to which different legal criteria apply.

  3. 3

    Liaise with the trustee honestly. A trustee will ordinarily be appointed by the court to oversee the repayment of your debts. They have the legal right to sell your assets in order to pay your debts, including, in severe cases, your property (if you own it).

  4. 4

    Agree to a payment plan with the trustee and stick to it. The legal procedure for repayment of debts endeavours to ensure debtors are paid without a significant drop in the living standard of the bankrupt. However, failure to adhere to the agreed payment plan will result in assets, such as your house and car, being sold to service the debt. Furthermore, if you renege on the agreement, the period of bankruptcy can be extended beyond the one year that is standard (usually, after a year, even if the repayment plan is not completed, you will no longer be declared bankrupt and can apply for credit again).

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