Some Advice on Going Bankrupt in Scotland

DoshDolt

To start with, I would like to make it clear that I am not an expert in any way. I am simply a guy who has been through the system and would like to help others do the same.

Surprisingly, it is far simpler to declare yourself bankrupt in Scotland than any other part of the UK. (No court appearance for example)

First of all, make absolutely sure that you have no other avenue open to you. Bankruptcy is not to be taken lightly. Other threads on this site will list all of the advantages and pitfalls that you may encounter.

Secondly, it is vital that you seek help from a FREE agency such as the Citizen’s Advice Bureaux, as you cannot proceed with your bankruptcy claim without them. (See below) DO NOT be tempted by any debt firm that promises to help you for a small fee.

After consultation with your debt counsellor, where you have reached the decision that bankruptcy is the only course available to you, you need to get the form. Agencies like CAB sometimes has the form in their office to hand out. Alternatively, you can download and print one out from the web.

The form you need is called "Debtor Application Pack 1" (without concurrence of qualified creditor) and is issued by the Accountant in Bankruptcy (Scotland’s Insolvency Service).

(Note: Business bankruptcy requires a different form, but the CAB will keep you straight.)

The ‘Accountant in Bankruptcy’ (AiB) is the equivalent of the English ‘Official Receiver’ (OR) that you will see listed here.

There is a non-returnable fee of £100 that must be paid into the AiB account before you post the form to them.

Fill out the form VERY CAREFULLY. Any mistake, omission or error could invalidate your claim, which means that you will lose your £100 fee. It is far safer to fill out the form in the presence of your debt counsellor, who can guide you through the application safely.

In Scotland, once you have posted off the form, that’s about it. The AiB will write to you within 5 days to advise that they have received your form. If they have any questions they will be included in this letter. You must answer these questions quickly and honestly.

About 3 weeks after that, (if all goes well) you will receive a letter from the AiB to advise that your application for bankruptcy has been granted.

As a rule, you will NOT need to see a lawyer concerning your bankruptcy. (Unless there are problems)

As a rule, you will NOT need to go to court (Court attendance only required if there is a discrepancy).

I was amazed at how smoothly my application went. Four weeks after sending off the form, it was all over.

I hope this information helps and that you find it of benefit – even if only to calm your nerves!!

Citizens Advice Bureaux
Citizens Advice Bureaux offer advice about debt problems. If it is a very complicated case, they will usually be able to refer you to a money advice specialist. (Normally these specialists work within the CAB.)
To find your nearest CAB, please check your phone book or computer search engine.

Money Advice Centres and Law Centres
Help with debt problems is available through Money Advice Centres or Law Centres.
The addresses and telephone numbers of Money Advice Centres and Law Centres can be found in the telephone directory. Alternatively, you can look on the Money Advice
Scotland website. www.moneyadvicescotland.org.uk

National Debtline
The National Debtline is a free, confidential and independent telephone helpline. It also provides an information pack on dealing with debt. The line is available on
Monday to Friday 9.00 to 9.00 and on Saturday 9.30. to 1.00. The National Debtline
telephone number is 0808 808 4000 and the website is:
www.nationaldebtline.co.uk/scotland

IF

Thank You for your post DD......knowing nothing about the Scottish BR system it was very helpful and will help others too x

DoshDolt

Hope so ifwishes. That's the plan.

kduffy101

yeah thats about right doshdoit,
my time scale was the same as yours,i went down the lila route,
just recived my soa today as its been 6 months from my br,
went to c a b today+got them to double check my soa my circumstances have not changed so the next time i hear from aib should be them telling me ive got auto-dishcharge,woohoo a nice xmas pressie.

DoshDolt

Good to hear kduffy.
I'll keep my fingers crossed for you that all goes well.
Remember to REALLY enjoy your Christmas.

Best wishes

DD

GREEDYGUTS

Hi, was it the lila route for your bankruptcy ?
Or did you have a charge for payment or statuary demand which makes it harder in Scotland to apply for your own bankruptcy ?

DoshDolt

Hi greedyguts,
Yes, it was the Low Income (lila) route for me.
I was able to keep the wolves at bay just long enough to get the application in.
So, they didn't have a chance to raise any action against me.
In some respects, going bankrupt is a bit like a game of chess.
You have to plan your moves very carefully in advance - and once your gameplan is formed, you have to stick to it.
Regards,
DD

broxiebear1

DoshDolt wrote: »

Hi greedyguts,
Yes, it was the Low Income (lila) route for me.
I was able to keep the wolves at bay just long enough to get the application in.
So, they didn't have a chance to raise any action against me.
In some respects, going bankrupt is a bit like a game of chess.
You have to plan your moves very carefully in advance - and once your gameplan is formed, you have to stick to it.
Regards,
DD

hi dd thank you for your post only problem is i have to wait for a charge for payment before i can go b.r last week i recieved a letter from one of my creditors threatning court action or sending a debt collector i dont have any secured debt and stopped paying creditors from januarry

GREEDYGUTS

broxiebear1 wrote: »

hi dd thank you for your post only problem is i have to wait for a charge for payment before i can go b.r last week i recieved a letter from one of my creditors threatning court action or sending a debt collector i dont have any secured debt and stopped paying creditors from januarry

Hi broxiebear, Im afraid you might have to wait a long time for any action to be taken even after the threat of court action

Raphael

GREEDYGUTS wrote: »

Hi broxiebear, Im afraid you might have to wait a long time for any action to be taken even after the threat of court action

Yeah, I stopped paying my creditors in 2006, and all I got was threat after threat from various DCAs, no action whatsoever. It's only around the same time as I decided to apply for BR through LILA (earlier this year) that Scott & Co mentioned a charge for payment (for unpaid council tax) and even then they were still giving me one last chance to pay before the Charge for Payment, which was never served, as I was made BR at that point anyway.

Good luck to you Broxiebear, do you have any council tax or HMRC debts, they're the ones most likely to actually take action.

broxiebear1

Raphael wrote: »

Yeah, I stopped paying my creditors in 2006, and all I got was threat after threat from various DCAs, no action whatsoever. It's only around the same time as I decided to apply for BR through LILA (earlier this year) that Scott & Co mentioned a charge for payment (for unpaid council tax) and even then they were still giving me one last chance to pay before the Charge for Payment, which was never served, as I was made BR at that point anyway.

Good luck to you Broxiebear, do you have any council tax or HMRC debts, they're the ones most likely to actually take action.

hi raphael only debt i have outwith credit cards and loans is with overpayment of wtc about £1300 and thats been on going since 2008 so do you think no one will go to court for a charge for payment i dont care about debt collectors i will just tell them im waiting for a charge for payment so i can go b.r then close the door. have already changed phone number.