Belongings not included in a Bankruptcy

When you are Sequestrated (made bankrupt) your Trustee may sell assets to help pay for the costs of your case and to try repay some money owed to your creditors.  The law in Scotland protects a significant number of everyday items, household goods and equipment from being sold by your Trustee.  These items are sometimes referred to as being exempt from vesting in your estate.  In the unlikely event that your Trustee is seeking to sell an exempt asset, as outlined below, you should seek advice immediately. 

Articles kept out with a dwelling house (goods or items usually kept outside of your home)

The Debt Arrangement and Attachment (Scotland) Act 2002.  Section 11(1), the relevant part of which is repeated below, lists those items kept out with a dwelling house which are exempted from attachment.  Such articles are expressly exempted from vesting in a Sequestration.

1. any implements, tools of trade, books or other equipment reasonably required for the use of the debtor in the practice of the debtor’s profession, trade or business and not exceeding in aggregate value £1,000 or such amount as may be prescribed in regulations made by the Scottish Ministers;

2. any vehicle, the use of which is so reasonably required by the debtor, not exceeding in value £3,000;

3. a mobile home which is the debtor’s only or principal residence;

4. any tools or other equipment reasonably required for the purpose of keeping in good order and condition any garden or yard adjacent to, or associated with, a dwelling house in which the debtor resides.

Articles kept in a dwelling house (goods or items usually kept inside of your home)

Part 3 and Schedule 2 to the Debt Arrangement and Attachment (Scotland) Act 2002, the relevant parts of which are listed below, and detail those items kept in a dwelling house which are exempted from attachment.  Such articles are expressly exempted from vesting in a Sequestration.

1. articles with sentimental value the aggregate of which do not exceed £150;

2. articles which are exempted and normally kept outside your home (as listed above);

3. clothing reasonably required for the use of the debtor or any member of the debtor’s household;

4. implements, tools of trade, books or other equipment reasonably required for the use of any member of the debtor’s household in the practice of such member’s profession, trade or business, not exceeding in aggregate value £1,000;

5. medical aids or medical equipment reasonably required for the use of the debtor or any member of the debtor’s household;

6. books or other articles reasonably required for the education or training of the debtor or any member of the debtor’s household not exceeding in aggregate value £1,000;

7. articles reasonably required for the care or upbringing of a child who is a member of the debtor’s household;

8. toys for the use of any child who is a member of the debtor’s household;

The following articles belonging to a debtor shall be exempt from attachment and exempt from vesting if they are for the use of the debtor or a member of their household:  

• beds or bedding;

• household linen;

• chairs or settees;

• tables;

• food;

• lights or light fittings;

• heating appliances;

• curtains;

• floor coverings;

• furniture, equipment or utensils used for storing, cooking or eating food;

• refrigerators;

• articles used for cleaning, drying, mending, or pressing clothes;

• articles used for cleaning the dwelling house;

• furniture used for storing:

• clothing, bedding or household linen;

• articles used for cleaning the dwelling house; or

• utensils used for cooking or eating food;  

• articles used for safety in the dwelling house;

• tools used for maintenance or repair of the dwelling house or of household articles; 

• computers and accessory equipment;

• microwave ovens;

• radios;

• telephones;

• televisions.