How to Apply

Scottish bankruptcy legislation applies to individuals, partnerships and other unincorporated organisations such as trusts. It does not apply to limited companies and other organisations registered at Companies House. A deceased individual’s estate can be made bankrupt by an executor.  A debtor may apply to The Accountant in Bankruptcy for their own bankruptcy or a creditor can present a petition at a sheriff court to sequestrate - meaning, make someone bankrupt.

Information about creditor petitions can be found within owed money from the bannkruptcy section of AiB’s website.  All bankruptcy forms can be found within the Guidance section of this website.

Bankruptcy Application forms:

  • Debtor Application Pack - you should only complete the application pack if you are applying for your own bankruptcy or if you are the recognised executor of a deceased individual’s estate or if you have Power of Attorney for a person where the court documentation clearly states your authorisation to apply for bankruptcy
     
  • Debtor Application Pack - Part 2 - for use when completing a debtor application on BASYS only
  • Debtor Application Pack - guidance - guidance for completing a debtor application on BASYS only
     
  • Entity Application Pack - you should use this pack if you are a trust, a partnership (including a dissolved partnership), a body corporate or an unincorporated body but not a limited company, or a limited partnership (including a dissolved partnership) within the meeting of the Limited Partnership Act 1907.
     
  • Equality Monitoring Form - AiB is keen to gather equalities data to assist with the development of future policies.  If you are applying for bankruptcy online through BASYS we would, therefore, ask that you complete and submit the Equality Monitoring Form with your BASYS application.  This information will remain anonymous and not form part of your application.

Conditions:

To apply for bankruptcy you must meet the following conditions:

  • you must have received money advice from a qualified money adviser
  • you must be living in Scotland, have lived in Scotland or have established a place of business in Scotland, in the year immediately preceding the date of your application
  •  you must not have been made bankrupt in the last five years
  • you must pay the application fee

You must also meet one of the following conditions:

Fee

It will cost you £200 to apply for bankruptcy through the full administration route or £90 if applying via minimal asset process route. There are no waivers or exemptions for this fee and it is non-refundable. Payment can be made by cash, cheque, debit card, or postal order. There is also an option to pay online.

Ways to pay:

  • post - do not send cash by post
  • in person
  • at a bank
  • online

You can pay the fee in installments at the Royal Bank of Scotland (sort code 830608, account number 11444655) however your application for bankruptcy cannot be forwarded to AiB until the fee has been paid in full.

To pay in installments you must complete and submit a Notice to Pay by Installments form to AiB prior to making your first payment. The payee reference number requested on this form should be recorded when making payments to the bank.

Full details for payment are provided in each pack.

Nomination of trustee

The Accountant in Bankruptcy will be your trustee unless you choose to nominate an insolvency practitioner to act. The insolvency practitioner must consent to your nomination by completing the appropriate form contained within the pack. This must be returned with your application pack. In a minimal asset process case, The Accountant in Bankruptcy must act as trustee.