Giving Everything Away Before Going Bankrupt

	Do you live in Scotland? As Scotland has its own legal system, distinct from that of England and Wales, laws relating to bankruptcy are different too. In Scotland, personal bankruptcy is known as sequestration.

	Could I give away everything of value to my partner or friend before going bankrupt? NOTE: If you have serious problems with debt and are considering bankruptcy, it is important that you seek professional advice before doing so. When you are declared bankrupt, all of your assets immediately come under the control of the Official Receiver or whoever is appointed as your Trustee. They will then seek to sell them in order to raise funds to settle part or all of your outstanding debts. Hiding your assets from your trustee is a criminal offence - as is selling items at below market value or giving them away in a bid to avoid handing them over to your trustee. So simply transfering ownership of your assets to your partner or giving them away to a friend for safekeeping while you are bankrupt is against the law. As well as it being a criminal offence, such behaviour is likely to lead to the court issuing a Bankruptcy Restrictions Order which will remain in force from two to 15 years, depending on how seriously the court views your actions and the impact that they have had on your creditors. So instead of being discharged as a bankrupt after one year, the restrictions placed on you will you are bankrupt could be extended for up to 15 years - something that would have major repercussions for you.

Could I give away everything of value to my partner or friend before going bankrupt?

NOTE: If you have serious problems with debt and are considering bankruptcy, it is important that you seek professional advice before doing so.

When you are declared bankrupt, all of your assets immediately come under the control of the Official Receiver or whoever is appointed as your Trustee. They will then seek to sell them in order to raise funds to settle part or all of your outstanding debts.

Hiding your assets from your trustee is a criminal offence - as is selling items at below market value or giving them away in a bid to avoid handing them over to your trustee.

So simply transfering ownership of your assets to your partner or giving them away to a friend for safekeeping while you are bankrupt is against the law.

As well as it being a criminal offence, such behaviour is likely to lead to the court issuing a Bankruptcy Restrictions Order which will remain in force from two to 15 years, depending on how seriously the court views your actions and the impact that they have had on your creditors.

So instead of being discharged as a bankrupt after one year, the restrictions placed on you will you are bankrupt could be extended for up to 15 years - something that would have major repercussions for you.

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