Scottish Insolvency Law

Scottish insolvency law governs how debts are managed when individuals or businesses cannot pay what they owe. It involves processes like bankruptcy for individuals and liquidation for companies, allowing for the fair distribution of assets to creditors. Individuals may enter a "protected trust deed," which allows them to pay off debts over time. The law aims to give honest debtors a fresh start while ensuring creditors receive as much repayment as possible. Key agencies, like the Accountant in Bankruptcy, supervise these processes, ensuring compliance and fairness in handling insolvency cases.