Bankruptcy (SEQUESTRATION) is a legal term for insolvency in Scotland and as part of the bankruptcy act of 1984 required you to hand over your finances to the hands of a qualified insolvency practitioner. Going bankruptcy will obscure your ability to take out any finance or credit including but not limited to loans, credit cards, mortgages, car finance and perhaps some household amenities.
Why go bankrupt?
Sequestration is usually considered to be a last resort by many and will result in your credit rating being affected. However, the benefit to those with an inability to repay their debts is that all debts are written off and you will no longer have to receive any threatening calls or letters from your creditors about your defaults.
How do I go bankrupt?
By visiting your local money advice group or CAB you can speak a qualified money adviser. If you are a low earner a LILA may be a good option for you which requires only 1 payment of £200 for you to enter into bankruptcy. If you have a disposable income you may be required to pay more on a monthly basis to satisfy your creditors and you will be noted in the Edinburgh gazette as having went into sequestration.