How much would I pay to go bankrupt?
You may have to pay a £150 fee to the Accountant in Bankruptcy (AiB). The AiB looks after all insolvencies in Scotland.
You may be able to pay less than this if you are getting certain benefits, even if you are in work.
You may have to make payments into your bankruptcy. The AiB will decide if you can afford to do this after looking at your earnings and spending. You can ask for the payment terms to be changed if you cannot keep up with them.
How long does bankruptcy last?
It will usually last for a year but it can last longer.
During this time you must not borrow any more credit. And you must keep in touch with the AiB and tell them if anything has changed.
If you break any of the terms of your bankruptcy, it may be extended.
What debts are written off in bankruptcy?
Most debts are written off by bankruptcy, there are some that will not be. Such as:
- Student loans
- Criminal fines
- Fraudulent debts
- Child maintenance arrears.
Do I have to sell any assets?
You may have to. When the AiB looks at your finances they will make sure you keep what you need to live day-to-day.
Will other people know about my bankruptcy?
It will be listed on the Register of Insolvencies for five years.
Could this affect my job?
It could do, depending on what job you do.
It is worth checking your contract or terms to see if your company has rules about bankruptcy and your role. Talk to your debt advisor about this.
This is more likely if you have financial responsibilities. Such as, you cannot act as a company director.