KPMG Personal Debt Solutions

Bankruptcy

Could You Write Off Debt?


Are you Eligible?

Are you eligible for Bankruptcy, or are there other options available to you?

Do you live in Scotland?

What is your total unsecured debt?

What is Bankruptcy?

Bankruptcy, or Sequestration in Scotland, is a form of insolvency which is available to people who cannot afford to pay back their debt.

When you contact KPMG for help with Bankruptcy, our advisers will ask you some simple questions to fully understand your financial circumstances. We will agree with you what amount you can realistically pay towards your debt over a set time frame. If Bankruptcy is not right for your circumstances, we’ll let you know what other options are available to you.

When you get help from KPMG, we’ll handle the conversations with your creditors, saving you time and hassle. You will be legally protected against creditor action, and the interest on your debt will be frozen.

Book a Callback

If you would like more information on Bankruptcy, book a call back with one of our advisers above, or call us on 0141 300 5656.


What are the Advantages?

There are numerous advantages, a few of which are:

  • You will only pay back what you can afford.
  • Once you are discharged, your remaining unsecured debt will be written off.
  • Your Trustee will deal with creditors on your behalf.
  • We will agree with you how your assets (such as your home and car) are affected in advance. 

What are the Disadvantages?

Your credit file will show that you have been made Bankrupt, and this information will stay on your credit file for six years.  As a result of this, you may find it hard to get credit, even after your Bankruptcy has ended. 

Control of your assets will be passed to your Trustee. That includes any property that you own. It is not possible to exclude a property from a Bankruptcy. Understanding the implications for your property is a high priority and will inform much of our conversation with you. There may be more options for dealing with your property in a Trust Deed, and our advisers will talk these through with you when you call us.

Until you have been discharged, you cannot obtain credit of more than £500 without telling the lender that you have been made Bankrupt.

There are certain positions you cannot hold until you have been discharged from Bankruptcy. You cannot act as a Member of Parliament, a Justice of the Peace, a member of a school board or local council. You cannot be a director of a limited company or be involved in the day-to-day financial management of a company. 


Who Can Apply?

This could be an option for you if you live in Scotland, have £1,500 or more of unsecured debt and are unable to pay your debts as they fall due. You cannot apply if you have been made Bankrupt in the last 5 years.

There is an application fee of £200 which is payable to the Accountant in Bankruptcy.


What Debts are Included?

Similarly to a Trust Deed, Bankruptcy covers all your unsecured debts; however there are a few exceptions. These include student loans, court fines and debts incurred as a result of fraud or a breach or trust. Our advisers will explain if any of your debts cannot be included.


Will People Find Out?

All Bankruptcies are recorded in the Register of Insolvencies (ROI), which is free to access online; however, in most cases, the people you know will not find out unless you tell them yourself.


Will my House be Affected? Can I Exclude my House?

Any property you own will be passed to the Trustee. We will establish if there is any equity in the property by instructing a qualified surveyor to carry out a professional valuation which KPMG will pay for.

We will ask you to confirm the redemption figure for your mortgage and any other borrowing secured against the property.

If there is equity, there are a number of options for addressing it, and we will discuss each of these with you.  We will agree with you in advance how the Bankruptcy will affect your property, giving you peace of mind. 


Will my Car and Possessions be Affected?

If you have a reasonable need to use your car, and it is worth under £3,000 it will not be affected by Bankruptcy.  If your vehicle is worth more than this, the Trustee will have an interest in it. Our advisers will be able to discuss this with you when you call them.

Other possessions such as white goods, jewellery, mobile phones etc, will not be included.


Can I Still Have a Bank Account? Will my Credit File be Affected?

Yes, you can still hold a current account; however, in some cases, your bank may freeze or close your account once you have been made Bankrupt.  You will also not be able to make use of an overdraft facility.

It is good practice to hold a current account with a bank you don't owe money to.  Therefore on some occasions our advisers may suggest you change banks.

Your credit file will show that you have been made Bankrupt, and this information will stay on your file for six years. As a result of this, you might find it difficult to get credit for a period of time after your Bankruptcy is complete. You also cannot obtain credit of more than £500 without telling the lender that you have been made Bankrupt.


Contact Us Today

The Personal Debt Solutions team at KPMG have helped thousands of Scottish residents through the process of Bankruptcy.  If you are in need of help, book a call back with one of our advisers today, or call us on 0141 300 5656.

If you want to know more about the other debt solutions available, read though our pages on the Debt Arrangement Scheme, and Protected Trust Deeds.

Book a Callback