Bankruptcy is a formal method of dealing with debts if other options have failed or are inappropriate. The consequences of bankruptcy are severe and no one should make an application for bankruptcy without being fully aware of the alternatives and seeking advice at an early stage.

In Scotland bankruptcy is sometimes called sequestration.

If a debtor is declared bankrupt, a trustee will be appointed and will have the legal authority to take action to recover funds due via a regular contribution, or from any assets a debtor owns, including their home.

All assets, including property, will be investigated by the trustee and where necessary sold.