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Declaring Bankruptcy in Scotland (Sequestration)

Often people think of the word 'bankruptcy' as frightening, daunting, too serious to contemplate. However, for those that need it, bankruptcy can also be incredibly freeing - a way to get you back on track. Find out more below.
Do I Qualify?
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How could bankruptcy help you?

Frequently asked questions

This could be an option for you if you live in Scotland, have £1,500 or more of unsecured debt and are unable to pay what you owe. You cannot apply if you have been made bankrupt in the last 5 years.

Similarly to a trust deed, a bankruptcy covers all your unsecured debts; however there are a few exceptions. These include student loans, court fines and debts incurred as a result of fraud or a breach of trust. Our advisers will explain if any of your debts cannot be included.

All bankruptcies awarded in Scotland are recorded in the Register of Insolvencies which is free to access online. In order for someone to become aware of your bankruptcy, they would need to actively look your name up on this register. Your bankruptcy will remain on the Register of Insolvency for one year after the Trustee has been discharged, then it will no longer be visible.

If you own your property, we will establish if there is any equity in the property by instructing a qualified surveyor to carry out a professional valuation. We will ask you to confirm the redemption figure for your mortgage and any other borrowing secured against the property. If there is equity, there are a number of options for addressing it, and we will discuss each of these with you.  We will agree with you in advance how the bankruptcy will affect your property, giving you peace of mind before you make any commitment to apply for your bankruptcy.

If you have a reasonable need to use your car, and it is worth under £3,000 it will not be affected by bankruptcy.  If your vehicle is worth more than this, the Trustee will have an interest in it. Our advisers will be able to discuss this with you when you call them. Other possessions such as white goods, jewellery, mobile phones etc, will not be included.

Yes, you can still hold a current account; however, in some cases, your bank may freeze or close your account once you have been made bankrupt. It is good practice to hold a current account with a bank you don't owe money to. Therefore, on some occasions our advisers may suggest you change banks.

Your credit file will be updated to reflect the fact you have been made bankrupt; however, this will only be visible on your credit file for six years. Until you have been discharged from your bankruptcy, you will be unable to borrow more than £500 without telling the lender you have been made bankrupt. During your bankruptcy, and for a short period thereafter, you therefore might find it difficult to borrow; however, you may have less of a need to do so anyway.

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Important Information

Advisors will discuss all possible debt solutions available depending on where you live in the UK. Advice is tailored to individual circumstances and can only be offered following an initial fact-finding process. Third party fees may apply. Free and impartial information also available at moneyhelper.org.uk. If you choose to enter a solution that offers the opportunity to write off a percentage of unsecured debts included, the percentage may vary. A debt write off amount of between 25% and 75% is realistic, however, the debt write off amount for each customer differs depending upon their individual financial circumstances and is subject to the approval of their creditors. The example provided has been achieved by 10% of IVA customers in the last 12 months.

About

Cleanslate is a trading style of UK Debt Expert Group Limited.

 

Company Information

UK Debt Expert Group Limited is authorised and registered by the Financial Conduct Authority (FCA), registration number 688071. Registered in Scotland with company number SC382881 at Regent House, 5th Floor, 76 Renfield Street, Glasgow, G2 1NQ. Information Commissioner’s Office number ZB590053.

Advice providers

If you live in Scotland: Carrington Dean Group Limited Company number: SC225672 Registered address: Regent House, 5th Floor, 76 Renfield Street, Glasgow, G2 1NQ FCA number: 674395 ICO number: ZA351745

If you live in England, Wales or Northern Ireland: UK Debt Expert Limited Company number: SC382881 Registered address: Regent House, 5th Floor, 76 Renfield Street, Glasgow, G2 1NQ FCA number: 688071 ICO number: ZB590053

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