Some Advice on Going Bankrupt in Scotland

yesican

DoshDolt-Thank you so much for your information.Its VERY helpful..Im taking the plunge this 2011 after hiding from reality.You've just answered most of my disturbing questions.

You're a saint..

Nice nickname by the way!

Momofone.

coolcait

Reminder

Most of doshdolt's great information on going bankrupt in Scotland is still absolutely valid.

But a few changes were made on 15 November 2010 so, folks, please check the Accountant in Bankruptcy website carefully, to make sure you've got all the up-to-date info - and the correct form!

The application form has been changed quite a bit. If you're applying for bankruptcy under the Low Income Low Asset (LILA) conditions, then you have to provide a lot more documents upfront.

If you're one of the many poor souls who didn't fit the LILA conditions, and hadn't received a Charge for Payment (or other evidence of Apparent Insolvency) - meaning that you were stuck in a no man's land of not being able to apply for bankruptcy, even if it was your only option - good news!

There's now another option. You can get a Certificate for Sequestration from an Insolvency Practitioner or a Money Adviser, if you can demonstrate that you are not able to pay your debts as they become due.

You don't have to pay anything for get the Certificate, but you would still have to pay the fee for the bankruptcy application (still £100).

Also, if you go to an Insolvency Practitioner for the Certificate, you are not obliged to nominate that IP to act as your Trustee.

HTH

broxiebear1

thanks coolcait your a star as usuall:T councill have went to court for £475 spoke to moneyadvise scotland they wel she told me about new rule but said just wait for charge for payment should be feb.
i yhink im at the delaying state just now afraid what or leaves me with.
ill keep in touch
broxie:beer:

roougers

This is just the sort of advice/experiences I was hoping to get.

Many thanks to everyone who will make me sleep a bit better this evening!

P x

Custodian

coolcait wrote: »

Reminder

Most of doshdolt's great information on going bankrupt in Scotland is still absolutely valid.

But a few changes were made on 15 November 2010 so, folks, please check the Accountant in Bankruptcy website carefully, to make sure you've got all the up-to-date info - and the correct form!

The application form has been changed quite a bit. If you're applying for bankruptcy under the Low Income Low Asset (LILA) conditions, then you have to provide a lot more documents upfront.

If you're one of the many poor souls who didn't fit the LILA conditions, and hadn't received a Charge for Payment (or other evidence of Apparent Insolvency) - meaning that you were stuck in a no man's land of not being able to apply for bankruptcy, even if it was your only option - good news!

There's now another option. You can get a Certificate for Sequestration from an Insolvency Practitioner or a Money Adviser, if you can demonstrate that you are not able to pay your debts as they become due.

You don't have to pay anything for get the Certificate, but you would still have to pay the fee for the bankruptcy application (still £100).

Also, if you go to an Insolvency Practitioner for the Certificate, you are not obliged to nominate that IP to act as your Trustee.

HTH

Wow! Thank you SO much for posting this. This is just what I needed. I didn't even know it existed and thought I was in for a loooong wait for a creditor to obtain a Statutory Demand or similiar before I could apply for sequestration.
Thanks again!

ronnie_2

Bookmarked this for later use, I feel I may need it soon

Bollotti

my situation is that the HMRC have asked for my wife and I to immediately pay £25,000 or thereabouts in tax arrears. The business is in financial services, and when the "crunch" hit, out income stream was cut almost overnight, and we have struggled to keep our heads above water for the past couple of years.

We had an agreement in place with HMRC for payment, and have kept this up without missing a payment.

They have now asked for full payment or £2,000 per month, which we just cannot pay.

I am self employed and they have also threatened to stop me from trading.

If they do this, I will not be able to pay the mortgage or anything else, so really worried.

They have said they will issue a summary warrant, and my CAB adviser said they will apply for a sequestration.

I have little or no equity in my house, an no arrears on the mortgage. With 4 kids we are really worried that we may lose the house.

I currently qualify for working family tax credit, will this allow me to go on the LILO scheme? Joint income last year was under £25,000

Any advice gratefully received.

adamantine

i went down the LILA route this year and it was insanely easy!

sent off the forms with 3 months worth of bank statements and the £100 cheque on the monday 1st class recorded. they rang me on tuesday with a couple questions about 2 transactions (a compo cheque from the council for not having proper heating for over a year and a friend transferring me money that she owed me from ages ago) and on the wednesday it was granted. i rang them on the thusday to tell them about an old empty savings account and i was told i was BR.

never had any problems with anything at all except they didnt get an email i sent but that got sorted out when i resent it.

Bollotti

adamantine wrote: »

i went down the LILA route this year and it was insanely easy!

sent off the forms with 3 months worth of bank statements and the £100 cheque on the monday 1st class recorded. they rang me on tuesday with a couple questions about 2 transactions (a compo cheque from the council for not having proper heating for over a year and a friend transferring me money that she owed me from ages ago) and on the wednesday it was granted. i rang them on the thusday to tell them about an old empty savings account and i was told i was BR.

never had any problems with anything at all except they didnt get an email i sent but that got sorted out when i resent it.

Can I do this myself or wait for sequestration by HMRC?

Polly_Wolly_Doodle

Have you phoned either CAB or nationaldebtline, i had a great experience with both and went for sequestration but not LILO so not happy to advise there.
You can pay your £100 by phone to AiB via card, they give you a ref number and you quote that on your forms, fantastic service, we are so lucky up here.
Good luck, i'm sure if you have no equity then you will not be made homeless, you'd be too expensive for the IP to move and accommodation would be more than you pay on mortgage, so you'd be a nuisance for the Council!