In Scotland, bankruptcy is called sequestration. It is a formal method of dealing with debts. Once awarded an Insolvency Practitioner is appointed as your Trustee. Depending upon your circumstances there are a number of ways to apply for bankruptcy. We will be able to guide you through this process. Under a bankruptcy, a value (if applicable) is realised for your assets (which includes any property you own). And you may also be required to make a contribution but this will depend upon your income.
No agreement is required from your creditors You will normally be discharged from bankruptcy after one year Interest will stop on your debts when you are declared bankrupt and your debts will be written off with the exception on Student Loans and court fines Trustee’s fees and outlays are paid from the payments received into your bankruptcy All outstanding debts, up to the date of sequestration, will be written off at the end of your period of bankruptcy.
Your Trustee values your assets for selling on and in certain circumstances this can include the sale of your home It will affect your credit rating and you may find it difficult to get credit in the future You may lose your family home if you do not maintain your payments to your mortgage lender It may damage your business interests and employment prospects You may still be liable for some debts which are excluded e.g. Student Loans and court fines.
No one should make an application for bankruptcy without seeking advice. If you are facing this dilemma call us immediately. As a licensed insolvency practitioner we can help you decide whether bankruptcy is your best option. Contact TC Debt Solutions based in Dunfermline, Fife for a confidential review of your situation.