Be aware that most companies you owe money to will only make you bankrupt as a last resort. They’ll look for alternative ways for you to pay before applying to the court to make you bankrupt.
You must owe at least £5,000 (currently £25,000 due to coronavirus), although two or more creditors can apply jointly.
The creditor must have sent you a copy of the Scottish Government’s Debt Advice and Information Package at least two weeks, and not more than 12 weeks, before they make your petition for bankruptcy.
They must also prove that you’ve gone into apparent insolvency within the last four months.
This is normally done by proving you’ve been served with either:
- a charge for payment, or
- a statutory demand, which is a formal warning that you could be made bankrupt if you don’t pay the debt or make an offer to the creditor.
If a creditor applies to make you bankrupt, it’s important to get free debt advice. An alternative solution may be available for you.