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Notes for Guidance - Bankruptcy (Scotland) Act 2016 (as amended)

This guidance describes the general functions of Accountant in Bankruptcy, interim trustees, trustees and commissioners in relation to their responsibilities regarding bankruptcies which started on or after 30 November 2016.

16.3 Grounds for a BRO

The following behaviours could be considered grounds for an application for an investigation:

  • failure to keep records which account for a loss of property
  • failure to produce records to the Accountant, the trustee or interim trustee
  • failing to supply accurate information to an authorised person for the purpose of the granting under section 9 a certificate for sequestration of the debtor’s estate
  • making a gratuitous, or other, alienation
  • creating an unfair, or any other, preference
  • making an excessive pension contribution
  • failure to supply goods or services which has given rise to a creditor’s claim
  • trading when they knew they could not pay their debts
  • incurring a debt before bankruptcy which they knew they could not pay back
  • failure to satisfactorily account for losses in property to the:
    • sheriff
    • Accountant
    • interim trustee
    • trustee
  • excessive gambling or other extravagance which may have materially affected their debts
  • neglect of business affairs that contributed or increased their debts
  • fraud or breach of trust
  • failure to co-operate with the Accountant, interim trustee, trustee
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