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Bankruptcy & Debt law in Glasgow, as with the rest of the United Kingdom, is a legal area that focuses on helping individuals or companies struggling with insurmountable debt to either repay a portion of the debt or have them discharged. Bankruptcy is a serious legal matter which can significantly impact one’s financial future. It involves complex legal proceedings where assets might be distributed amongst creditors, debtors might be discharged of debts and where certain types of debts are prioritised over others.
Engaging a lawyer is crucial in most bankruptcy or debt situations. For individual bankruptcy, a lawyer can guide you to understand whether bankruptcy is the right solution for you, help you consider alternatives, and assist you in filing your bankruptcy case. For businesses, if your company is insolvent, a lawyer can advise you on whether administration, liquidation, a company voluntary arrangement, or receivership is the right route to take. Also, in cases where you owe money, a lawyer can represent you if your creditor decides to take legal action.
In Glasgow and the rest of the UK, the primary legislation governing bankruptcy is the Insolvency Act 1986 and the Insolvency Rules 2016. These laws outline the procedures for declaring bankruptcy, the consequences of bankruptcy, and how one can potentially get discharged from bankruptcy. Additionally, Scotland has its laws for bankruptcy known as 'sequestration'. These laws deal with how one becomes bankrupt, the duties of the bankrupt person and the trustee, the effects of bankruptcy, and finally, how and when the bankruptcy comes to an end.
No, you cannot be made bankrupt without your knowledge. You will receive a notification from the courts if someone is trying to make you bankrupt.
When you declare bankruptcy, most assets become part of your bankruptcy estate to be used to pay off creditors. This may include property, vehicles, personal belongings and even business assets. However, not all assets are included; there are exceptions for basic household goods and potentially your pension.
In general, bankruptcy lasts for one year; however, it may last longer if you fail to comply with your bankruptcy restrictions. Bankruptcy will also stay on your credit report for at least six years, making it difficult to borrow money or get credit.
Most unsecured debts, such as credit cards and personal loans, can be included in bankruptcy. However, some debts like student loan repayments, court fines, or child support will not be wiped out by bankruptcy.
The process of declaring bankruptcy involves filling out an application on the UK Government's Insolvency Service website. You have to share details about your income, debts, expenses, and disclose any assets you own. You will also need to pay a fee.
The Accountant in Bankruptcy (AiB) is the Scottish Government's insolvency service, offering guidance and resources specific to bankruptcies in Scotland. Furthermore, StepChange and National Debtline are charitable organizations offering free, confidential, and impartial advice to people dealing with debt problems.
The best course of action when dealing with bankruptcy or debt is to consult with a knowledgeable and experienced lawyer. This step ensures you understand your options, rights, and obligations under the bankruptcy laws. Online directories of legal professionals in Glasgow, or the Law Society of Scotland, can help you find a lawyer who specializes in bankruptcy and debt law. Remember, it's beneficial to act quickly to avoid further legal and financial implications.
