The following Restructuring & Insolvency guidance note Produced in partnership with Joan Devine and Rachael Bicknell of Addleshaw Goddard LLP provides comprehensive and up to date legal information covering:
A creditor can petition the court for the bankruptcy (also referred to as sequestration) of a debtor under the Bankruptcy (Scotland) Act 2016 (B(S)A 2016) (see Practice Note: Scotland: the process for applying for sequestration) or the liquidation of a company under the Insolvency Act 1986 (IA 1986)(see Practice Note: Scotland: compulsory liquidation). For a glossary of commonly used Scottish insolvency terms, see Practice Note: Glossary of Scottish insolvency words and expressions.
A creditor may petition the court to sequestrate the estate of a living or deceased individual, a partnership (including a dissolved partnership), a limited partnership (including a dissolved limited partnership), an unincorporated body, a body corporate or a trust (see B(S)A 2016, s 6 and Practice Note: Scotland: insolvency of ordinary partnerships and limited partnerships). A creditor may petition the court to liquidate or wind up a company which is registered under the Companies Act 2006 (CA 2006) and has its registered office in Scotland (section 73 of the IA 1986).
In the first instance, the creditor must be a qualified creditor within the meaning of B(S)A 2016, s 7 and the debtor (unless deceased) must be ‘apparently insolvent’ within the meaning of B(S)A 2016, s 16.
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