Less Court Involvement

A debtor need not go to court to make themselves bankrupt, (as opposed to being made bankrupt by a creditor, the taxman etc). All debtor applications are processed by the AiB. The Accountant in Bankruptcy (AiB) is the body responsible for administering the process of bankruptcy in Scotland.

Minimum Debt

£1,500 is the minimum debt required for a debtor to apply of their own bankruptcy. £3,000 is the minimum debt a creditor must be able to prove to petition for a debtors bankruptcy.

Time to Make Alternative Arrangements

The court can delay a decision on a creditor's petition for bankruptcy to give a debtor time to agree a repayment plan that avoids the need for bankruptcy, for example Debt Management or a Trust Deed.

Bankruptcy Duration

Reduced from 3 years to 12 months, but can be extended in the event of un-corporative and inappropriate debtor behaviour before or during the bankruptcy.

Bankruptcy Restriction Orders

If the court considers a debtor has been blameworthy and/or reckless in contributing to a bankruptcy, or they are attempting to hide assets - there are consequences.

A Bankruptcy Restriction order (BRO) can be made by the court or the debtor must agree to a Bankruptcy Restriction Undertaking (BRU).

A BRU is similar to a BRO but a debtor admits wrong doing and accepts the consequences without the need for a court order.

BRO/BRU’s restrict a debtor's credit and work activities for up to 15 years.

Contributions from Income

The process for obtaining contributions from a debtor's income during bankruptcy is formalised by Income Payment Agreements and Orders (IPA/IPO's), which normally last 3 years.

Student Loans

Student loans are not written off through Scottish bankruptcy.

Bankruptcy for Debtors with Low Income-Low Assets

LILA is the route into bankruptcy for scottish residents on low income with little assets. See Scottish LI-LA bankruptcy for more details.