Bankruptcy Process
Bankruptcy is awarded either:
Following a debtor's application to the Accountant in Bankruptcy
or:
Following a petition to the sheriff court by a creditor (or, in certain circumstances, by the trustee in a trust deed)
When a debtor applies for their bankruptcy and the application form is correctly completed with the fee and all the information needed, bankruptcy will normally be awarded within five working days of the Accountant in Bankruptcy receiving it.
It may take longer if the Accountant in Bankruptcy has to write to the debtor to ask for more information or evidence.
When a creditor or a trustee in a trust deed petitions the sheriff for bankruptcy, a debtor could be made bankrupt in less than a fortnight from the date their petition is presented. The debtor will receive a warrant citing them to appear at a court hearing to decide whether they should be made bankrupt.
If a debtor appears or are represented at the hearing and provide evidence, the sheriff may decide to postpone their decision if they are satisfied that the debtor will pay what they owe within 6 weeks or if they plan to repay their debts through the Debt Arrangement Scheme.
Both the award notice issued by the sheriff court and the certificate of award of bankruptcy issued by the Accountant in Bankruptcy will name the trustee appointed to administer the bankruptcy.