If
you live in Scotland and have unsecured personal debts above £1,500 which you are unable to pay
on a scheduled time, then you might be able to enter Bankruptcy as a form of
insolvency to help clear away from your debt. Though Bankruptcy (also known as
Sequestration in Scotland) isn’t right for everyone and hence, it is advisable
to seek help from the experts before proceeding.
Bankruptcy
in Scotland is a legal
process wherein you are formally declared insolvent by the Accountant or a
Court. The sheriff court can issue a bankruptcy petition against you under two
circumstances.
Either
you apply to the court declaring your incapability to repay the debts or your
creditor shall apply to make you bankrupt if they find you incompetent to repay
the debt which is about £3000.
In the latter case, the creditor shall first handover ‘statutory demand’ or
‘charge for payment’. If you fail to reply to the same within the given time
period then the creditor issues a bankruptcy order.
Under
the following cases, you can apply for bankruptcy
in Scotland-
·
You have no money
to pay your debt.
·
If you owe a debt
of about £1,500 to £17,000 and are unable to repay it and have little property
and no disposables then you shall apply for a type of bankruptcy called Minimal
Assets Process (MAP).
·
If you owe £3000 or more debt to the creditor and you
are able to apply for the Minimal Assets Process (MAP)
·
If you unable to
repay the loan and you know that your circumstances are unlikely to change in
the future.
Upon being bankrupt all your finances will be taken care of by your trustee. It is your trustee’s responsibility to handle all your belongings and your assets with the aim of paying as much money as possible to the creditor you are in debt to.
