A PETITION by Her Majesty’s Revenue and Customs to have the estate of St Blane’s Hotel in Kilchattan Bay declared bankrupt was granted at Rothesay Sheriff Court this week.
No-one appeared to contest the petition for sequestration – the Scots legal term for personal bankruptcy – which was raised on December 14 under the terms of the Bankruptcy (Scotland) Act 1985.
Sheriff Ruth Anderson granted a warrant for sequestration and the appointment of an ‘accountant in bankruptcy’ as a trustee, along with the award of expenses.
Sequestration happens when a debtor, or one of his or her creditors, applies to a court for a sequestration order to be made, providing that the debt owed is £1,500 or more (or £3,000 or more if the application comes from a creditor).
For a sequestration order to be made, the debtor must be ‘apparently insolvent’ – or unable to pay their debts – which means creditors will have to show they have attempted to enforce the debt without success.
When a sequestration is granted, the court orders that any of the debtor’s assets are transferred to a trustee, who will then try to sell the assets, with any money raised going to the creditors.