Scottish LILA bankruptcy.

lucy1981

Hi I'm mostly a lurker on these boards but thought I'd post a bit about my sequestration (Scottish bankruptcy) for all those North of the border looking through the boards wondering what happens. I'm 28 and been in debt since age 18 due to credit cards, then getting loans to pay off maxed cards, basically ended up with around £15k of debt and absolutely nothing to show for it! I gave up work after having my daughter and although my partner pays the bills, he absolutely refused to pay anything towards my debts, and quite rightly so. He is soooo good with money, never had even a credit card, got savings - basically the way I now aspire to be.

Anyway I'm now bankrupt and here's what happened for anyone wondering:

9 June - appointment with Citizens Advice. Lovely women goes through all my details and helps me fill out form to go bankrupt under LILA (Low Income Low Asset) rules, as I don't own a house and my own income (only child benefit and child tax credits) is less than £229 a week. Relieved to hear my partners income and savings not taken into account even though we live together. The form doesn't have a SOA on it, only asks my own personal income and debt details.

10 June - pay £100 fee to go bankrupt and post forms off to Accountant in Bankruptcy recorded delivery.

17 June - recieve form17, tick boxes saying my income below £229 per week, that I don't have any property, and that I don't have assets that total £10k or one individual asset worth over £1000. Post away recorded delivery.

18 June 2009 - awarded bankruptcy, the day they received my form17. (Still not received letter from AIB but notice was published in last weeks Edinburgh Gazette)


Compared to all you peeps in England the process seems really simple here, just over a week from visiting Citizens Advice to being declared bankrupt, no court visit, didn't even have a phone call from Accountant in Bankruptcy to ask any details. I realise they might still contact me but all I feel now is relief.

Have applied for Barclays basic account (had huge overdraft with Co-op included in bankruptcy) so just waiting on that opening so I can start again and be sensible. I will never, ever, touch credit again. I still can't believe how easily obtainable it was to me as an 18 year old student with only a student grant and Saturday job, to have student overdraft, credit cards, store cards. I hope they teach something about money management at school nowadays as I didn't have a clue as a teenager I just fell for the "free money" sales pitch!

Anyway sorry my posts a bit long, but if anyone has any questions ask away and I'll do my best to answer if it can help someone out.

philnicandamy

Thanks for the update lucy.....really handy to refer to should we have a fellow scot passing by
problem here is most of us went through the UK bankruptcy so sometimes scottish laws can be a little confusing...glad to hear your sticking around! we'll point people in your direction!! :D

lucy1981

These boards have been such a help to me just from reading others' experiences so if I can help out I'll be glad to return the favour!

philnicandamy

Good....we'll hold you to it!!!!

Definitely_Sub-Prime

I'm contemplating applying via LILA route (have already been in touch with my local Citizens' Advice Bureau) and I'd like to ask how much information do you have to give the AiB e.g. one month's bank statements, or do they want to go back further, and do you have to supply your credit card statements as well? What else do they ask? Are they intrusive?

kduffy101

BUMP.
any help for the scottish people thinking of br would be really helpful.
cheers

zantelover

I went bankrupt thru the L.I.L.A route, was made bankrupt 3rd of March, they didnt ask me for any bank or credit card statements, havent heard anything from them 4 months down the line.

mightymidge

Hello,
I wonder if anyone can help?
I'm on the verge on going through a low asset low income bankruptcy in Scotland. Can anyone who has been through this process give me an idea of exactly what to expect??
I'm trying to find out exactly what happens e.g. is your bank account frozen? do you have to provide bank statements.....etc

Any help/information would be great!

Many thanks to all who post - it's so helpful to read about other people and their experiences.....

Cheers

nikkiandmidgets

Wondered if anyone knows if you can claim bank charges etc back after you have been declared bankrupt? If so, do you get to keep the money, or does it pay back creditors? Wanted to use the money to upgrade my rental(Fit bath for toddlers and floor and decorate) or carpet, decorate, removal costs and buy white goods for a new place if I get a council house? Or what would happen if I claimed them first, used the money to upgrade property, pay council tax and smaller debts and then go for LILA bankruptcy?

philnicandamy

IF its scottish I presume the same as british OR's...once bankrupt any cash from reclaiming becomes property of the OR/AIB

worriedsik

Lucy
Thank you
i will be taking the LILA route soon i have the form to fill in so i will deff be keeping an eye on this thread
Iam a bit worried about it all but has to be done

thanks