Moving to Scotland

[mjl7972]

I am moving to Scotland in 2 months time, I have been saving for both myself and my wife to become bankrupt here in England, neither of us work so it will be cheaper (to a level we can afford) to pay for bankrupcy when we move. My question is can I include debts accrued in England in a Sequestration?
Thanks in advance for your replies

[rory32]

I have been saving for both myself and my wife to become bankrupt here in England, neither of us work so it will be cheaper (to a level we can afford) to pay for bankrupcy when we move.

You should be aware that there are some differences between sequestration in Scotland and Bankruptcy in England. Although the recent changes in sequestration through The Bankruptcy and Diligence Act etc. 2007 mean that in many ways sequestration is not as severe a step as it once was. The main points to note of the new Act are

· Debtors will be discharged from bankruptcy after one year instead of three years
· There will be a power to impose Bankruptcy Restrictions for up to 15 years if the debtor’s conduct, before or after the award of sequestration (the date they become bankrupt), indicates that some form of further restriction is in the public interest.
· Debtors will apply to AiB instead of the Sheriff Court for their own bankruptcy
· There will be a new route into bankruptcy for debtors with low income and low assets (LILA)
· A debtor’s family home will be reinvested if their Trustee does not begin action to sell it within three years of the award of sequestration (the date they become bankrupt)
· The debt threshold for bankruptcy will increase to £3000 for creditors but will remain £1500 for debtors
· A debtors potential interest in a Will or Trust will be reinvested when they are discharged from bankruptcy
· Student Loans will not be written off by bankruptcy.

My question is can I include debts accrued in England in a Sequestration?

Yes, although to make yourself bankrupt under Scots law you may well have reside in Scotland for 3 months so that the court has jurisdiction under The Civil Jurisdiction and Judgements Act 1982 s41.