Personal bankruptcy for Scottish residents is called Sequestration.
To be sequestrated you must owe at least £1,500 and either:
one or more of your creditors must have taken you to court to enforce or demand you repay a debt or
you must have been on a debt payment programme under DAS that has been revoked and one of the creditors in the DPP have been to court and obtained a decree on one of the debts.
This situation is termed Apparently Insolvent.
Apparently Insolvent
If either of the following apply to you then you are apparently insolvent:
If you have not paid within 14 days notice of obtaining a ‘Charge for payment’.
If you have not paid within 14 days notice of receiving a summary warrant against you to recover rates, Council Tax, other taxes etc.
If you have not paid within 21 days notice of being served a Statutory Demand for Payment.
These are the main ways in which you can be sequestrated.
Information you need to provide
A list of your assets
A list of all debts
A weekly or monthly wage slip
A breakdown of your weekly expenditure
Restrictions during sequestration
You must not gain credit over £250 without telling the lender that you are an undischarged bankrupt. You may be guilty of a criminal offence if you do.
You are not allowed to start up a limited company or be involved in the day-to-day management of a limited company.
You are not allowed to act as a member of parliament, and you cannot become a member of any local council or school boards.
How long will sequestration last?
As long as you work with your trustee, your sequestration will normally end after one year from the date of sequestration. This is called being discharged. However, if you do not co-operate with your trustee, the court can increase the length of your sequestration for up to two years at a time.
What happens to my assets after I'm discharged?
By the time you are discharged, any assets that the trustee has not sold do not return to you. The trustee keeps them. This includes your house or your share of it if it is jointly owned.
Only assets you gain after your discharge belong to you
Clear Insolvency is trading name of Hamilton and Clarke Ltd.
Registered in the UK. Company no. 6465374. Consumer Credit License (UK) 612841
Clear Insolvency, 27 Old Gloucester Street, London, WC1N 3AX
