Home > Bankruptcy

    Do I Qualify?

    Use our debt calculator to work out the monthly payments you could be making to help clear your debt.

    By submitting your details, you consent to a member of the Don't Fret About Debt team contacting you to discuss your details and using your data as per the terms in our privacy policy. We won't share your information with any third party organisations outwith our group.


    Bankruptcy, or sequestration as it’s known in Scotland, is one option for writing off the debt you can’t afford to repay.

    The same rules apply whether someone makes you bankrupt (a creditor’s petition) or you make yourself bankrupt (Debtor Application). A trustee is appointed to deal with your assets and liabilities, just as with a trust deed.

    If you have the ability, you may have to make a contribution from your earnings. You will usually receive your automatic discharge after 1 year. However, you may be required to make a contribution from earnings for a period of 4 years.


    You will only pay back what you can afford.

    You gain protection from any further debt recovery action. Any existing wages arrestment will stop after the bankruptcy has been awarded.

    You no longer have to deal with your creditors yourself, the Insolvency Practitioner takes care of this.

    On successful completion of the bankruptcy, any remaining debt will be written off.


    Any assets you own may require to be sold. We understand assets are a high priority and will discuss the implications with you and look at alternative options where suitable.

    Your credit rating will be affected for around 6 years.

    Sequestration may prevent you from doing some jobs. For example you cannot act as an MP, an MSP or a Justice of the Peace.

    You cannot act as a director of a limited company until you are discharged from the bankruptcy.

    FAQs About Bankruptcy

    You will normally be discharged 12 months after the date you were made bankrupt, provided you co-operate with your trustee. If you are making a contribution, you must continue to pay this for the remainder of the 48 months. Your trustee will remain in office until all contributions have been received and any assets have been realised.

    Our advisors are real debt experts, qualified to give you the best possible, personally tailored advice. We will work with you to ensure you choose the right option and know what to expect prior to entering bankruptcy.

    Bankruptcy / sequestration is a formal debt solution for individuals who have unmanageable debts that they have no prospect of repaying. It is a form of insolvency which writes off any debts you are unable to pay back. There are certain criteria you must meet to be eligible for bankruptcy:

    • You must owe more than £1,500 in unsecured debt.
    • You can’t make yourself bankrupt if you have already been bankrupt in the last five years (however a creditor can).
    • You must be a Scottish resident or have lived in Scotland during the last 12 months.

    If you can afford to make a regular payment towards your debt, or you have an asset worth more than £1k, Full Administrator Bankruptcy could apply.

    A Trustee will assess your income and expenditure and agree a contribution that you will make on a monthly basis. Unless your circumstances changed, you would be expected to make this payment for 4 years.

    If you are unable to make a payment towards your debt, have no material assets, and your total debts are under £25k – you would be able to apply through the Minimal Asset Process (MAP).

    Our expert advisers will help make sure you are given the right information relevant to your circumstances.

    As an approved money adviser, we can give you debt advice and assist with completing the application.

    You must also have either:

    • A Certificate for Sequestration signed by the approved money adviser who has given you the advice.
    • A charge for payment which has expired without making payment.
    • A summary warrant which has expired without making payment.

    If you are made bankrupt, it will stay on your credit report for six years from the date your bankruptcy is awarded. Usually, by the time someone considers bankruptcy, their credit rating is already affected by missed payments.

    It is unlikely that you will be offered credit while you are an undischarged bankrupt. However, once you receive your discharge after 12 months, your credit will start to repair itself.

    Not necessarily, especially if you own your own home and there is limited or no equity in the property. This means that there will be no surplus funds for your creditors after your mortgage has been paid off. Therefore it wouldn’t be beneficial to sell.

    If you have equity in your property, we would explore the option of a third party buying out your creditor’s interest in the property. This would avoid the need to sell your property. All details and options would be discussed and confirmed prior to entering bankruptcy. If there is no third party available, then we would suggest another option which protects your property.

    We are aware of banks which have this policy. Therefore, we will advise you to open a new bank account prior to entering bankruptcy. The new current account has to be a basic account with no overdraft facility.

    You must take advice from an approved money adviser, like Don’t Fret About Debt, who can submit an application on your behalf. 

    This website uses cookies to give you the best possible user experience. By continuing to use this website, you are agreeing to the use of cookies as set out in our Cookies Policy