Applying for bankruptcy (Scotland)

Applying for bankruptcy (Scotland)

You can apply for your own bankruptcy using one of the following bankruptcy procedures:

Minimal Asset Process (MAP)

MAP is designed to be a simpler process for those on lower incomes and with few assets. You can only use this process if:

  • you owe at least £1,500 but not more than £25,000 (student loan debt isn't included); and
  • none of your assets on its own is worth more than £1,000 (excluding any vehicle you require) and all your assets together aren't worth more than £2,000.

Before you can apply using the MAP, you must get advice from a money advisor. If you show them that you are unable to pay your debt, they will give you a certificate for sequestration (sequestration is another word for bankruptcy in Scotland). You can use this certificate to apply for your own bankruptcy if you do so within 30 days of getting it.

You can only use the MAP if you currently live in Scotland, or you did so in the past year. Also, if you've been made bankrupt in the past 5 years, or you've used the MAP in the past 10 years to be made bankrupt, you can't use it now.

There is a MAP application fee that will have to be paid before a bankruptcy will be granted.

Full administration

Full administration is a way of applying for bankruptcy if you don't meet the MAP requirements.

Unlike the MAP, there is no limit on the value of your assets. However, you must owe at least £3,000.

You must either be apparently insolvent or you must have a certificate of sequestration.

A certificate of sequestration will be given to you by a money advisor if you show them that you are unable to pay your debt. This certificate is valid for 30 days.

If you want to show that you are apparently insolvent instead, you will need to have one of the following legal documents sent to you by someone you owe money:

  • A document with the words Charge for Payment at the top, which gives you 14 days to pay the debt; or
  • A document with the words Statutory Demand at the top giving you 21 days to pay the debt.

If you don't pay as required by either document, it becomes your proof of apparent insolvency.

You can only use full administration if you currently live in Scotland, or you did so in the past year. You can't use it if you've been made bankrupt in the past 5 years in Scotland.

There is an application fee that will have to be paid before a bankruptcy will be granted.

More information

For more on the bankruptcy process in Scotland and how to apply, see the Accountant in Bankruptcy website.

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