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, bankruptcy is referred to as sequestration and its processes have been developed for centuries. At present there are two formal processes for applying for bankruptcy. The first is the Minimum Asset Process (MAP) and the second is called Full Administration Bankruptcy (FAB).
- 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
- Trust Deeds
- 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