Insolvency is where a person or company can't pay their debts. An insolvency practitioner is appointed as trustee to sell all the available assets, and pay as much as possible to the creditors.
The winding up, liquidation and receivership of limited companies and limited liability partnerships are largely reserved to the UK Parliament.
Insolvency of individuals, ordinary partnerships and some public bodies (such as universities) is devolved to the Scottish Parliament.
There are two forms of 'devolved' insolvency in Scotland. They are sequestration (usually called 'bankruptcy') and the protected trust deed. The main legislation that controls insolvency in Scotland is the Bankruptcy (Scotland) Act 1985, as reformed by the Bankruptcy and Diligence etc. (Scotland) Act 2007.
Support from the Accountant in Bankruptcy agency
The Office of the Accountant in Bankruptcy (AiB) is an Agency of the Scottish Government. It is responsible for administering the process of Personal Bankruptcy and recording Corporate Insolvencies in Scotland. The Agency operates independently and impartially whilst remaining directly accountable to Scottish Ministers.