Scottish and English debt laws are different, so if you are a Scottish resident and have questions on debt, then this is the place to post.

Moderators: TalbotWoods, JaneClack

By mjl7972
#471790 Hi, I declared bankruptcy in Aug 2009 using the LILA process and was discharged a year later. Since then things have not worked out how they were planned and I find myself in the unfortunate position of needing to declare bankruptcy again. My question is that as the AIB state that to be able to declare bankruptcy you should not have been made bankrupt in the last five years and I was declared bankrupt just over 5 years ago but discharged just over 4 years ago, am I able to apply or do I have to wait another year?
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By TalbotWoods
#471792 Hi mjl7972

Have asked for some advice on this myself, as I cant be sure.

However, gut instinct (and I hope I am wrong) is that they are referring to the period you were bankrupt.

But will let you know for definite on Monday(ish)

Tim
By wdm2
#471807 The legislation (Bankruptcy Scotland Act 1985) refers to:

'an award of sequestration has not been made against him in the period of 5 years ending on the day before the date of presentation of the petition; and...'

I take that to mean it refers to the date you were made bankrupt rather than the date of discharge. That being the case you should be fine to seek bankruptcy again.

You can always call the AiB helpline to confirm though.
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By TalbotWoods
#471812 I like it when I appear to be wrong!

Thank you for the input wdm2, as always very much appreciated

Tim
By mjl7972
#472176 Thanks for your replies. Things have moved on since the original post. I moved with my family to England to start university. As we had lived in Scotland within the last year I was still able to declare bankruptcy last week using the LILA route. I have been allocated an agent who seems to be a private company are they trying to impose an IPA? My family's only income is my student loan, child tax credit and child benefit. It is nearly impossible to survive now without an IPA let alone with one. I am only basing this fear on the thought that a private contractor would be paid/bonused on results. With me not having spare money surely this would not be a good result for them. BTW my wife was declared bankrupt the same week but her case is being kept in house.
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By JaneClack
#472179 It is very unlikely you will get an IPA due to the fact you are living on a student loan and benefits which will basically just cover living costs - there are many reasons a bankruptcy can be passed to a Trustee. You went into bankruptcy via the LILA route which means that they agree there is a low income and low assets! Don't worry and let us know what happens - and remember you can always challenge a proposed IPA if you feel it is unfair.
By coolcait
#472182 Most likely your case has been passed to an agent because this is the second time you have applied for bankruptcy within five and a bit years. It probably has very little to do with an IPA.

There may also be residency issues.

Or, it may be nothing.