Insolvency and Debt

Our insolvency solicitors regularly assist individuals and insolvency practitioners in relation to corporate and personal insolvency.  We regularly appear in courts throughout Scotland for sequestrations, liquidations and the debtors courts.  If you are owed money then pursing an insolvency option may be the best manner to recover the debt.  If you owe money, you may be have a creditor pursuing an insolvency.  We can assist with both.


This is the legal term for bankruptcy in Scotland.  A creditor owed £3,000 or more can apply to the court to have the debtor sequestrated (declared bankrupt).  A petition is presented to the court and then served upon the debtor.  Once the petition is served, it calls in court on a specified debt.  Pollock Fairbridge Solicitors assist creditors by presenting petitions for sequestration and handling all of the court work involved.

Owing someone money is a daunting prospect.  By the time matters have got to the point of a creditor petitioning for bankruptcy, options are limited and immediate advice is required to avoid bankruptcy.  Pollock Fairbridge Solicitors work with a range of organisations to assist with all matters relating to debt and assisting debtors in avoiding sequestration.  We will sensitively discuss all options available to you and work out the best strategy to resolve debt issues and avoid bankruptcy.

We regularly assist clients with issues arising after bankruptcy, including recall of sequestration, gratuitous alienations, unfair preferences and eviction.  It is essential to take advice at any early stage should any of these issues arise following bankruptcy.  Often negotiation between a trustee and a bankrupt can resolve an issue which arises and failing to deal with matters promptly will often necessitate a court action being raised which adds significant cost and risk.

Administration/Liquidation/Winding Up

When a company cannot meet its liabilities as they fall due then the company is insolvent.  Directors or shareholders can decide to wind up the company and either apply to the court or go through a voluntary process.  A company can also be made insolvent by the court following a winding up petition lodged by a creditor.  If a petition is granted by the court then an insolvency practitioner is appointed as the administrator or liquidator of the company and the directors lose control of any assets.

When a winding up petition is lodged with the court, the court normally directs that the petition be served upon the company as well as advertised in the Herald and the Edinburgh Gazette.  Answers need to be lodged within 8 days of service and advertisement, so it is imperative that anyone seeking to oppose the order lodge answers in that period.  If no answers are lodged within that time, it is likely that the court will grant the winding up.

Directors duties include insuring that a company does not continue to trade whilst insolvent.  If a director has any concerns regarding the solvency of the company at any stage they should seek advice at an early stage.  Following the granting of a winding up, the administrator or liquidator must obtain a statement of affairs from the directors.  This can be a complex matter and we can assist with preparing them, together with notarising the signing of them.  Other issues arising post liquidation include gratuitous alienations, directors disqualifications and examinations of directors.  We can advise on all matters arising post liquidation.