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 b gray
#154965 After waiting 18 months I have finally received a charge for payment and intend to apply for sequestration but need advice on the following

When do the 14 days count from, is it 14 days after receiving the charge for payment ie. the form would then be taken to the court on day 15?

How do I ensure that no action is taken with regards to the charge for payment ie sherriff officers still try to arrest my wages, should I contact them to advice that I have applied for sequestration or is there some process already in place?
By scrounger1
#154988 hi there i was in the same boat as you just the other week.......the 14 days count from the date on the charge for payment so you can go on day 15 i don't think they can take any further action until the 14 days have expired re arresting your wages as you could technically pay the charge within the 14 days and your crediors would have to go back to court after this period to arrest your wages

i went to trading standards to fill in my sequestration paperwork as you need to do 2 identical handwritten copies of the forms and it is a generic form whether your a buisness or individual so there are lots of pieces to be scored out that do not apply lots of signing and dating

i went to the court on the thursday handed in my forms and received a letter from the court on saturday saying the petition had been granted

trading standards told me to take both forms to the court as if there were any errors both had to be ammended before sending a copy to the accountancy in bankruptcy......then i had to go and post the AIB COPY first class recorded delivery with proof of posting take it back to the court before they would accept my form giving them the proof of recorded posting and the fee of £63 that was it i was absolutely cr*ping myself but it really was that easy....i made sure i had no funds in my bank accounts before submitting the forms as you have to include your balance in each account and also the money you had on you in person...i am now going to try and open a new bank account for wages and direct debits as i suspect even though i did not owe money to my existing bank account it will probably be frozen or closed as most banks do not let bankrupts operate an account though there are 3 banks that do allow you a basic account which i am opting for

although i waited for about 25 days after charge of payment had been served nothing further had happened in that period but do whats best for yourself hope this helps and you probably know most of this already but it isn't easy finding scottish law everything you find online always seems to refer more to english law but at least you will feel that you are moving forward now and not stuck in limbo good luck
By b gray
#155054 Thanks for your reply it has put my mind at ease with regards attending the court.

Does anybody know how does the creditor that obtained the charge for payment know that you have petitioned the court for sequestration. Is it best to contact them to inform them in order that thye do not contact my employer to try and get a wages arrestment?
By scrounger1
#155067 they would have to go back to court to get permisson to arrest your wages but as soon as you have petitoned for your bankruptcy they can not take any further action to arrest your wages ......i think the court would have note that you have sequestrated your estate and from then on in the accoutant in bankruptcy take over the administartion of your bankruptcy it will be on your credit reference file your creditors would be informed very quickly after you have applied for sequestraton it does not matter what they do afterwards they could not arrest your wages as it will be on the court system that you are bankrupt they cannot touch you after this point and they cannot do anything until the charge of payment has elapsed so if you go on day 15 there is nothing they can do as it is up to the trustee awarded to deal with your estate to value your assets and how much you cab afford to pay each of your creditors ..........if i were you i would not inform your creditor until after you have made yourself bankrupt as you wil give them a head start to try and take action on day 15 before you submit your forms so sure once you get your letter from the court stating you are bankrupt go ahead tell them there is nothing they can do then but if you tell them in advance they may try to have your bank account arrested on day 15 they cannot contact your employer without going to court again by which point if you are bankrupt they can no longer do this try not to worry stupid i know cause i was terrified i would have my own wages arrested but waited until i had been paid first an extra 10 days later before submitting my forms and nothing had happened
By Scrooge
#155492 Scrounger is right B.Gray, I wouldn't bother warning them you're going bankrupt, keep it as a nice surprise for when they keep phoning you after you've done the deed :lol:

I got a phone call 5 days after I went bankrupt, they were threatening me with Court action, I thoroughly enjoyed telling them to go ahead because they were too late :lol: , that was met with a 20 second silence at the other end before I hung up on them....................sweet how sweet :lol: :lol: :lol:
Last edited by Scrooge on Mon Jun 11, 2007 9:28 pm, edited 1 time in total.
By b gray
#155525 I went to the court today, lodged the debtor's petition and sent a copy to the AIB.

Can somebody know inform me of

1 What will happen next?
2 When will I hear from the AIB?
3 Will I be interviewed by the AIB?
4 What happens at the interview?
5 When do I actually become sequestrated?
6 When can I let my creditors know and will this stop them contacting me?
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By angusgal
#155853 Sorry I cant give you answers but I think it would be great and really helpful to loads of people if someone here who has actually gone through the whole process of Sequestration could write a guide of exactly what happens in Scotland relating to the AIB process and afterwards during the period of sequestration until discharge.
By scrounger1
#156016 i was thinking the very same i thought i might do a wee diary as it happens you know of the dates concerned at each stage just so it may be of help to others in similar situations .........not for judgement but maybe just so people can see what happens and when how long it takes as there seems to be a lot less about concerning us in the scottish system....i am still at the beginning so not much to write yet but i will start compiling the info soon
User avatar
By angusgal
#156058 Brilliant :D just what we have been waiting for , look forward to you first installment :!:
By b gray
#156416 I submitted my petition to the court and the AIB on Thursday last week, 7/6/07 along with my expired charge for payment.

On Monday 11/6/07 I received notification from the court that the petition had been accepted and that I was now sequestrated. I then thought that this would be the end of my troubles but today 13/6/07 I received a copy of an earnings arrestment that was submitted by the Sheriff Officers to my work on 12/6/07.

I then contacted the Sheriff Officers to inform them that I was sequestrated and was advised that there was nothing that they could do in order to stop the arrestment and that I would have to contact HFC bank for whom they were acting on behalf of. Contacted HFC who advised that thye would not stop the arrestment until the AIB notified them that I had been sequestrated. I was actually suprised as to how pleasant the Sheriff Officers were pity the same could not be said about HFC.

I then contacted the AIP who advised that they have got a backlog and had not yet logged my petition. They stated that as soon as thye received my details they would contact HFC and get the arrestment cancelled, luckly I am paid monthly and get paid tomorrow so it is too late to action the arrestment this month. The AIP advised me to phone back in a few days and they get the ball rolling ASAP, stated that within a week they would contact HFC. I was also advised by the AIP to contact my bank to establish if they will allow me to keep my account.

Will keep updated on future developments.
By Scrooge
#156420 Congratulations on going bankrupt B.Gray and welcome to a new life ! Sounds like the wages arrestment was too late, but in any case ALL Court decrees and orders arresting wages are superseded by bankruptcy, hence the wage arrestment order is now as much use to them as a gallon of salt water in the middle of the Sahara desert :lol: :lol: :lol:
By pollypocket
#157899 Well done on getting sequestrated and thank you for letting us all know what happens and how to do it x
By b gray
#158211 :D Thought I would give an update on the position with my sequestration.

I spoke to the co-operative bank who states that they will have no problems with me keeping my cashminder a/c with them. Very relieved to establish this.

Spoke to the AIB on several occassions via their helpline no., all of the staff at the AIB are very helpful and understanding in their approach and manner(hope this doesn't change). The AIB have got a new computer system which has resulted in them having a backlog and for some reasons thye have been unable to trace my documentation as yet.

With regards to the wages arrestment that the HFC had served, despite being advised by HFC that they could not cancel the arrestment until the AIB contacted them to confirm my sequestration. I wrote to the HFC enclosing a copy of the debtors petition award and thankfully they have contacted my employer and cancelled the arrestment.

Due to the delay with the AIB i decided to contact all of my creditors by phone today(the first time in 18 months that i have made contact, despite now having received over 400 letters) to advise them that i had been sequestrated. The majority of the creditors simply asked at which court and on what date the sequestration took place and then advised me that I would receive no further correspondence from them. A couple of the creditors had no idea what i was talking about when i said that i been sequestrated. This gave me the impression that despite all of there letters threatning legal action that they have no idea about scots law. I had to explain to the less enlightened creditors that sequestration was the scottish equivulent of bankruptcy, this appeared to be understood. All of the companies were in fact ok to deal with, suppose it is too late for them to be anything else.

At the moment being sequestrated feels like a huge burden has been removed from my shoulders and that there is light at the end of the tunnel.
By b gray
#160101 After being sequestrated on 7/6/07 I did not hear anything from the AIB, phoned them several times and then had to send a copy of my petition and the award to them. This appears to have got the ball rolling as I have now heard from a local IP who the AIB have appointed to act on their behalf. The letter from the IP asked me to contact me in order to arrange an appointment, duly phoned and arranged to attend their office for an appointment this week.

Can anybody inform me what will happen at this interview, will I find out if I have to make any monthly payments and if so how much or how long will they take to decide this?