Bankruptcy works differently depending on where you live in the world. Usually the general concept is about the same – it’s a way for you to clear your unsecured debts if you’re unable to repay them in full.
It even works differently in various parts of the UK.
Scotland and England
In Scotland, until recently you could only become bankrupt if your lenders took legal action against you. The rules have now been changed, however. You can petition for your own bankruptcy (like in England), but only if you have a minimum of £1,500 unsecured debt that you simply can’t afford to repay.… Read the rest