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 bcroller
#50180 Can anyone advise me please if it is a straightforward matter (or not) to seek your own bankruptcy/sequestration (live in Scotland) ?

Or must a person wait until a creditor goes to the court for a bankruptcy.

In my own case of having a 19k unsecured debt , no assets, rented council home and sole income of benefits only (illness) many have advised sequestration/bankruptcy. While I realise the future implications of this and do not consider it at all lightly , I feel I could consider it more clearly if I knew if I could request my own bankruptcy and get it over and done with.
Is this practical in Scotland?

Trust Deeds DMPs etc have not been advised due to sole income being benefit payments only now since having to end working.

Assets are none.

It just seems so endless no matter what you do being hounded and harrassed by creditors who have no interest in the situation other than to keep harrassing pressing and pushing.

If bankruptcy ended that then perhaps it would be the best answer. BUT if I had to wait until one of them decided to opt for sequeatration the strain of that waiting is a real worry.

May I finally ask if it IS practical to request your own bankruptcy in Scotland can you advise the time scale please from time of signing a form onwards..
Also would you advise doing this via the likes of C.A.B. or through a solicitor. Legal aid should be available I think.

Thank you

BCr
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By JLP
#50399
bcroller wrote:Can anyone advise me please if it is a straightforward matter (or not) to seek your own bankruptcy/sequestration (live in Scotland) ?

Or must a person wait until a creditor goes to the court for a bankruptcy.

In my own case of having a 19k unsecured debt , no assets, rented council home and sole income of benefits only (illness) many have advised sequestration/bankruptcy. While I realise the future implications of this and do not consider it at all lightly , I feel I could consider it more clearly if I knew if I could request my own bankruptcy and get it over and done with.
Is this practical in Scotland?

Trust Deeds DMPs etc have not been advised due to sole income being benefit payments only now since having to end working.

Assets are none.

It just seems so endless no matter what you do being hounded and harrassed by creditors who have no interest in the situation other than to keep harrassing pressing and pushing.

If bankruptcy ended that then perhaps it would be the best answer. BUT if I had to wait until one of them decided to opt for sequeatration the strain of that waiting is a real worry.

May I finally ask if it IS practical to request your own bankruptcy in Scotland can you advise the time scale please from time of signing a form onwards..
Also would you advise doing this via the likes of C.A.B. or through a solicitor. Legal aid should be available I think.

Thank you

BCr
----------



In short- the answer is NO- you can not file for your own personal sequestration in Scotland. The laws are changing-I posted a link to the new laws on a thread further down to the changes.But at the moment, you have to wait till a creditor takes you to court, gets a decree against you and Serves a Charge for Payment of Money.Once the 14 days have expired, you can then submit a Bankruptcy application to your local Court. THere are other methods, such as a Failed Attachment Schedule and a Creditor serving you a Statutory Demand-but these are lesss common.

I agree with the problem of having to put up with Creditor phone calls et al. When I get a client who has decided on Bankruptcy, I have to warn them that they will have to put up with demands rom Creditors.Its an unfortunate fact of life in Scotland that you have to turn yourself from someone who actually wants to deal with their debts-into someone who looks like a Can pay, wont pay. I advise people to be strong and shut the door in pepole's faces, hang up on creditors and tell them that they arent paying a bean. If someone has definately decided (with advice and a good look into their circs) that Sequestration is their chosen option I reuse to write to their creditors.If they think that a Money Advice Agency is involved-then they think that some money is imminent so they wont take client to court. With the clients approval, I will even write to the creditor (if I have already been in touch) and say that I havent heard from the client. It sounds like shady practices but what choice do people have-we want a resolutiion to their problems and without the creditor taking then to court, they are in a debt "limbo".If the creditor has an inkling that the client is on Benefits-they wont start Court Action. You must remember that many English Creditors do not understand our laws up here, and think that they CAN file for their own Bankruptcy.

Some MOney Advisors have contacted Creditors and asked them to pursue for a Clients Bankruptcy-but with very limited success. Many will not pursue this option unless they are confident that the debtor has assetts.

I really understand wher you are coming from.I have a drawer full of clients in your position (as do most Money Advisors in Scotland).We are hoping that the new laws may help.Meanwhile, best advice I can give you is be as rude to your creditors as you dare, and refuse to pay a bean and divulge your circumstances. I know its hard. If you want to post your Creditors, I can advise who is likely to take you to Court.

Can I say-You dont need a Solicitor.Most Solicitors are not that great in Money Advice and really dont know whats going on at the front end (I say most-not all) Any CAB ,Local Authority or Advice Agency Money Advisor can do your Bankruptcy forms.

The only thing I am not 100% sure of is whether you qualify for legal Aid for the £63 court fee -which is free if you get IS or Income Based JSA.
By bcroller
#50988 JLP Thank you for a very detailed and very helpful reply.

It is a pretty dire situation and really does seem heads I lose tails I lose.

Unless the Scottish Parliament get their act together and produce a renewal of the bankruptcy laws that will give people the chance to get on with life itself. We seem to be sadly lagging behind England with this.

Am I correct in understanding if a creditor knows there are no assets and income is only benefits then they will only harass and hound and not go to court to seek sequestration or other.? While I say ONLY harrass this is in effect worse as it is clearly designed to distrupt daily life. Illness appears to be of no releveance to date. perhaps I should be looking at the legalities of this aspect. Chasing and harrassing when nothing more can be offered or done. I have read the Banking Code and the OFT guidelines and what they say and what happens seems a nonsense.

You mentioned ....
>and a Creditor serving you a Statutory Demand-but these are lesss common.

Can you advise what that is please?

>best advice I can give you is be as rude to your creditors as you dare, >and refuse to pay a bean and divulge your circumstances. I know its >hard.

Have I taken the above advice correctly, do the above so that a creditor WILL take me to court ?

>If you want to post your Creditors, I can advise who is likely to take you >to Court.

There are 3 (credit cards but divisions of major banks)
Royal Bank of Scotland
Morgan Stanley
Natwest (part of the RBS group as far as I recall)


Thank you once again for taking so much time to give the advice. Much appreciated.


BCr
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By JLP
#51067 HI BCr

In answer to your questions- a Statutory Demand is a formal demand for payment, giving you 21 days to reply or without further notice, they will pursue your Bankruptcy through the Courts.If thats what you actually want-then its great (Creditor pursues the costs).However it is mostly used by Government Departments eg Council Tax (but only if they know you have an asset such as a house with equity), The Inland Revenue etc. Its very very uncommon for ordinary creditors to use it.

When I said dont divulge information and dont pay a bean-this is no guarantee that a Creditor will take you to court, but increases your chance of success. If they believe you have no assetts or liabilities, it not worth their while spending about £250 pursuing you through the courts when they arent going to get anything back. I always have a bit of a conscience advising people of this tack, because I believe it makes it harder for people who ARE in a position to negotiate with their creditors.Creditors think that the majority of people are "can pay-wont pays as it is".But as I said, until the laws change-their isnt much choice really........ :(

Looking through who you owe- from experience, the RBS are the ones who usually take Court Action and they are the ones who are most LIKELY to pursue.I say most likely, but its usually their Personal Loans division that take Court Action, not sure that the Credit Card dept will be so keen. I have had very few Credit Card companies take people to Court.

What unfortunately is likely to happen is that they will continue to pass your Debt on from one DCA to another, while you get stressed out with another letter. My suggestion is change your phone number (if you arent working at least they cant call you there), keep the most recent letters (you will need them or when you eventually go Bankrupt) and if some Debt Collector comes to your door-shut it. If Sheriff's Oficers appear-welcome them as they will usually be serving your Court Papers or Charge or Payment doc, which means that a Creditor will be taking Action.Unless you are behind with your Council Tax-whole diff ball game.Dont ignore recorded del letters either.

I can only advise you to ride it out-be strong and hope that at least you can get a resolution to your debts