Sequestration is a debt solution that is available in Scotland and is the Scottish term for Bankruptcy. This is a formal arrangement and is a form of insolvency designed to deal with debts that you are unable to repay with within a reasonable period of time. If you have more assets than debts then this may not be an option for you.
- Your creditors are no longer able to pursue you for payment.
- You will no longer need to deal with your creditors; instead the insolvency company would do this on your behalf.
- If you co-operate, you may be discharged after 12 months.
- You will only make a contribution if you can afford to do so – which is set by the Accountant in Bankruptcy.
- Once awarded you are protected from creditor action.
- If there is equity in your property, there is a risk it may be sold.
- May have negative implications on your employment or job prospects.
- Any monthly disposable income you have will need to go towards your sequestration.
- Entering sequestration will have a negative impact on your credit rating, making it harder to obtain credit in the future.
- Be residing in Scotland within the last year.
- Minimum debt level of £3,000.
- Not have been made bankrupt in the past 5 years.
- Must be able to afford the Accountant in Bankruptcy fee of £200.
- There are some occupations where you are restricted from going down the route of Sequestration.
Please note: Debt Support Service does not administer Sequestration.