Accountant in Bankruptcy

The Accountant in Bankruptcy is an Agency

The Accountant in Bankruptcy (AiB) is an Agency of the Scottish Government. The Agency operates independently and impartially whilst remaining directly accountable to Scottish Ministers.

The Accountant in Bankruptcy (AiB) Roles and Responsibilities

AiB supervise the process of bankruptcy in Scotland and act as trustee when appointed by the Court. In doing so, the Agency:

• develops policy for personal and corporate insolvency and diligence in Scotland;
• maintains a public register of insolvencies, Protected Trust Deeds (PTDs) and company insolvencies;
• ensures that those involved in the bankruptcy process, principally trustees and commissioners, properly carry out their responsibilities and take appropriate action when they fail to do so;
• undertakes the functions of commissioners in bankruptcies where none are elected by creditors;
• acts as trustee in bankruptcy where no insolvency practitioner is appointed to do so; and
• maintains the DAS Register, approves Debt Payment Programmes (DPP) and approves money advisors and payment distributors.
• The Accountant also employs private insolvency practitioners to act as her agents.

Debt Arrangement Scheme (DAS).
The Accountant in Bankruptcy (AiB) also administers the Debt Arrangement Scheme (DAS). You can find out more about DAS on the Money Scotland website, or by telephoning 0845 612 6460 and asking for the DAS team.

Summary of bankruptcy reforms in Scotland

The Bankruptcy and Diligence etc. (Scotland) Act 2007 received Royal Assent on 15 January 2007.  The main changes introduced by the Bankruptcy Part of the Act from 1 April 2008 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) from 1 April 2008
• 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.
• Debts under summary warrant procedure (such as council tex arrears) will now only be enforceable following a 'charge for payment' and will be subject to the time to pay provisions under the Debtors (Scotland) Act 1987.

If you would like any further information and advice about UK bankruptcy law and the possible alternatives to going bankrupt, please contact Money Advice Direct bankruptcy team on 0800 074 6918. The service can advise on all aspects of bankruptcy law including the Disadvantages of Bankruptcy, How to File for Bankruptcy, How to Avoid Bankruptcy and the Effects of Bankruptcy.

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