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What is bankruptcy

Bankruptcy is one way of dealing with debts you cannot pay. It’s sometimes called ‘sequestration’ but it’s the same thing.

How bankruptcy works

You need to apply for bankruptcy through an approved money adviser.

It costs up to £150 to apply. But some people do not need to pay the fee.

A part of Scottish Government called Accountant in Bankruptcy (AiB) will look at your application. They decide if you should go bankrupt.

How to go bankrupt: step by step

The process is different if a creditor wants to make you bankrupt.

What happens when you go bankrupt

If you go bankrupt:

How long bankruptcy lasts

After one year, you’re usually ‘discharged’ from bankruptcy and its rules. But the full bankruptcy process can last 4 years or longer.

If you need to make payments, you usually need to do this for 4 years.

You're 'discharged' from bankruptcy after 6 months if you go through the Minimal Asset Process (MAP).

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