Sequestration
What is Sequestration?
Sequestration is a form of insolvency for customers based in Scotland, it is very similar to bankruptcy and is a suitable option if you are unable to afford your debt repayments. Please beware your assets can be used to pay off your debts. You can apply for a sequestration or a creditor can apply on your behalf if you owe them over £3000.
As sequestration is designed to be used as a last resort, it is best to speak to a debt advisor to discuss all options available to you.
Advantages
- Once you have been sequestrated, included creditors are unable to pursue you or take any legal action against you to recover what they are owed
- Your Trustee (this may be an IP or the Accountant in Bankruptcy) will contact your creditors on your behalf
- Provided you co-operate fully, the Accountant in Bankruptcy may grant your discharge at the end of one year
- If you are receiving welfare benefits, these will not be classed as income for the purpose of calculating your monthly contribution
- Your included debts will be written off once you have been discharged
Disadvantages
- Your sequestration will be displayed on an online Register of Insolvencies, which the public can search
- Your credit rating may be affected and sequestration may affect your ability to obtain credit in the future
- If you are given money as a gift, you must inform your Trustee. Depending on the amount, you may be required to make this available for your creditors
- The fee for sequestration, paid to the Accountant in Bankruptcy, is £200
- If you are a homeowner or have assets these could be sold to pay towards your debts