How long does sequestration last?
Bankruptcy in Scotland usually ends after a year, but some parts of it carry on for much longer. Here is what ends when, and what can make it last longer.
Sequestration (bankruptcy in Scotland) usually lasts 12 months, after which you are discharged if you have co-operated with your trustee. Some parts carry on for longer: contributions from your income can run for 48 months, and your details stay on the public register for at least 5 years for most people. In the Minimal Asset Process (MAP), you are usually discharged after 6 months.
This page looks at timing only. For how bankruptcy works, who can apply and what it costs, see our main guide to sequestration.
When are you discharged from bankruptcy?
Being discharged means your bankruptcy formally ends. mygov.scot says that once you are discharged, you no longer have to follow bankruptcy rules or declare that you are bankrupt, and creditors cannot take legal action against you for the debts included in it, with some exceptions such as fines and student loans.
Full administration bankruptcy
This is the standard route. The Accountant in Bankruptcy (AiB), the part of the Scottish Government that deals with insolvency, can discharge you 12 months after the date your bankruptcy was awarded. Before then, your trustee (the person managing your bankruptcy, usually AiB itself) reports on how you have co-operated.
Discharge is not automatic. AiB decides, and it can refuse if you have not co-operated. AiB writes to confirm your discharge, and it is also recorded on the Register of Insolvencies.
The Minimal Asset Process
The law says a MAP bankruptcy ends 6 months after it is awarded. AiB’s bankruptcy information document says some restrictions stay in place for a further 6 months after that. There are no monthly payments in MAP. Our guide to the Minimal Asset Process explains who can use it.
What carries on after discharge?
Discharge ends the bankruptcy itself, but not everything connected to it.
Payments from your income
If the Common Financial Tool (the standard way of working out what you can afford in Scotland) shows you have money left over after essential costs, you pay a contribution under a Debtor Contribution Order. It lasts for 48 months from the date of your first payment, so it usually runs for about 3 years after a 12-month discharge. The amount can be set at zero.
The law lets the payment period be:
- longer, if you miss payments, or if you and the trustee agree
- shorter, if your payments and assets will be enough to pay your debts in full
While the order runs, mygov.scot says you must tell the trustee straight away about any change in your circumstances, complete a current ‘state of affairs’ form every 6 months, and give the trustee any information they ask for. AiB warns that if you miss payments, money may be taken from your wages or bank account.
The trustee’s work
mygov.scot says the trustee usually stays in place until around a year after your payments end, they have sold any assets and every part of your bankruptcy has been dealt with. AiB says you must keep co-operating until the trustee confirms everything is resolved.
Your home
If you own your home, the trustee has 3 years from the date of your bankruptcy to deal with a family home before it normally reverts to you, and that period can be extended or start later. Our guide to your home and sequestration explains the rules.
How long does each part last?
| Full administration | Minimal Asset Process | |
|---|---|---|
| Bankrupt until discharge | Usually 12 months | Usually 6 months |
| Bankruptcy restrictions | End on discharge, unless a bankruptcy restrictions order is made | Some continue for a further 6 months |
| Payments from income | Up to 48 months from your first payment, and can be zero | No monthly payment |
| Register of Insolvencies | Until 12 months after the trustee is discharged: at least 5 years for most people | 18 months from the date of bankruptcy |
| Credit file | At least 6 years | At least 6 years |
How long does bankruptcy stay on the register and your credit file?
The Register of Insolvencies is a public list that anyone can search free of charge. AiB says your details are listed for the whole of your bankruptcy and are normally removed 12 months after your trustee is discharged. Because the trustee’s work usually continues after your contributions end, mygov.scot says this is at least 5 years from the date of bankruptcy for most people. It can be longer if you do not co-operate with your trustee or if a bankruptcy restrictions order is made. For MAP, your details stay on the register for 18 months from the date of bankruptcy.
Your credit file is separate. mygov.scot says bankruptcy can stay on it for at least 6 years. Some credit reference agencies remove it automatically after 6 years. If yours does not, you can contact the agency and ask.
Want to talk through how long each option would last for you? Tell us a little about your situation and a licensed insolvency practitioner firm will call you to go through every option, including ones that are not a trust deed.
May not be suitable in all circumstances. Fees apply. Your credit rating may be affected. Free, impartial advice is available from MoneyHelper and other services.
What can make bankruptcy last longer, or end sooner?
Not co-operating with your trustee
AiB’s guidance sets out how it approaches discharge where someone has not fully co-operated. Depending on how serious the failure is, discharge can be refused for a further year, until the end of the 48-month contribution period, or indefinitely, for example where there has been no contact at all. If the trustee cannot trace you, AiB can defer your discharge indefinitely.
Missed contributions
If you do not pay what the Debtor Contribution Order requires, the trustee can extend the payment period. AiB says to always tell your trustee if your income changes, because the order can be varied.
A bankruptcy restrictions order
A bankruptcy restrictions order can be made if your behaviour before or during bankruptcy falls within grounds listed in the Act, such as failing to keep records that account for a loss of property. An order made by AiB lasts between 2 and 5 years. An order made by a sheriff (a judge in the local sheriff court) lasts between 5 and 15 years. While it lasts, some bankruptcy restrictions continue after discharge, including the rule that you must tell a lender before borrowing £2,000 or more.
Not telling the trustee about your home
If you do not tell the trustee or AiB about your interest in your home within 3 months of your bankruptcy, the trustee’s 3-year period to deal with it starts only when they find out.
Ending it sooner through recall
Bankruptcy can end early only in limited cases. AiB says bankruptcy can end early through recall if you can pay all your debts in full, including the trustee’s fees and outlays, or if you can show a creditor should not have made you bankrupt. Your trustee can explain how recall works.
How does this compare with other options?
Other Scottish debt solutions run on different timescales. A protected trust deed usually lasts 48 months and can run longer if you own a home: see how long a trust deed lasts. A Debt Arrangement Scheme programme has no fixed term, because you repay your debts in full over a reasonable time. Each also has its own effect on your credit file and a register entry.
How long a solution lasts is only one factor. Our guide to choosing between the Scottish debt solutions sets out the others, and free, impartial advice is available from free debt advice services. You need to speak to a money adviser before applying for bankruptcy in any case.
Official sources
- mygov.scot: when bankruptcy ends
- AiB bankruptcy information document: when does my bankruptcy end?
- AiB Notes for Guidance, bankruptcy, 14.1: discharge of debtor
- Bankruptcy (Scotland) Act 2016, section 91: the contribution payment period
- Bankruptcy (Scotland) Act 2016, section 159: how long a bankruptcy restrictions order lasts
Common questions
Can bankruptcy last longer than a year in Scotland?
Yes. Discharge after 12 months depends on you co-operating with your trustee. If you do not, the Accountant in Bankruptcy can refuse to discharge you, and its guidance allows discharge to be refused for a further year, until the end of the contribution period, or indefinitely in serious cases. A bankruptcy restrictions order can also keep some restrictions in place for years.
Do I still have to pay after I am discharged from bankruptcy?
If you have a debtor contribution order, yes. The payments run for 48 months from your first payment, so they carry on for around 3 years after a normal discharge. You also need to keep the trustee updated about your circumstances during that time. If the Common Financial Tool showed you had nothing spare, the order can be set at zero.
How long does bankruptcy stay on my credit file in Scotland?
mygov.scot says bankruptcy can stay on your credit file for at least 6 years. Some credit reference agencies remove it automatically after 6 years, and if that does not happen you can contact the agency and ask. This is separate from the public Register of Insolvencies, which has its own time limits.
Can I end my bankruptcy early?
Only in limited cases. The Accountant in Bankruptcy says bankruptcy can end early, through a process called recall, if you can pay all your debts in full, including the trustee's fees and outlays, or if you can show a creditor should not have made you bankrupt. Your trustee can explain whether recall could apply to you.
Related guides
- Sequestration (bankruptcy in Scotland) How bankruptcy works in Scotland, who can apply, what it costs and what it means for you.
- The Minimal Asset Process (MAP) A no-fee route into bankruptcy for people with low income, few assets and debts up to £25,000.
- Your home and sequestration The family home in bankruptcy: equity, consent to sell, the 3-year rule, joint owners and mortgages.
- How long does a trust deed last? The 48-month payment period, what can extend it, and how it compares with other options.