What is stopping me giving everything I own away and then going bankrupt?

When a sequestration order is granted in Scotland and you are made bankrupt, a trustee will be appointed to take control of and then sell any assets that you own, including your home.



You will however be able to keep what are deemed to be essential items.

But what is stopping you giving away everything of value or selling it cheaply to friends and family for example before you are made bankrupt?

If you sell, give away or dispose of any assets for less than their full value up to five years before going bankrupt, watch out.

Your trustee may ask the sheriff to recover those assets or their equivalent value so that they can be given to the trustee and sold for the benefit of your creditors.