Bankruptcy is an option to consider when you are unable to repay your debts over a realistic period. Bankruptcy may be an option where you simply cannot reach agreement with your creditors and your financial situation has become very difficult to manage.
Bankruptcy may be an option where you simply cannot reach agreement with your creditors and your financial situation has become very difficult to manage.
You are likely to be under a lot of pressure, with a number of your creditors competing to collect their debt from you.
In Scotland, the word ‘bankruptcy’ is used loosely to describe two different situations. The first is called informal bankruptcy or a ‘trust deed’, and the second is called formal bankruptcy or ‘Sequestration’.
- Priority and non-priority debts
- Bank accounts and debt
- Drawing up a budget sheet
- Negotiating reduced payments to your debts
- Free Debt Management Plans
- Debt Arrangement Scheme
- Informal bankruptcy or a ‘trust deed’
- Formal bankruptcy or a ‘sequestration’
- Write Offs
- Will I be 'blacklisted'?
- What can creditors do if I don't pay?
- Should I tell creditors about my mental health?
- Getting help from a specialist adviser
- Next steps