Sequestration is the Scottish equivalent to Bankruptcy. It is a method of writing off the debts that you cannot pay. Sequestration will free you from your debts enabling you to make a fresh start. As with Bankruptcy, your assets are then transferred to the Trustee who shares them out amongst your creditors. The Trustee in Sequestration can also seek a voluntary contribution from your income, if you are in employment.
Like Bankruptcy, Sequestration can be applied to you from the court, or you can do it yourself with debts of over £3,000 (See Self Sequestration below)
Read on to find out more about Debt Management or fill in the form and one of our advisors will contact you to advise on your debts.
Is sequestration right for me?
Anyone can enter Sequestration. If you cannot meet your debt obligations when they fall due then sequestration might be a consideration for you. You must fall under the below criteria
A petition for Sequestration can be done by yourself (debtor's petition) or by one or more of your creditors (creditors petition). If you cannot meet your credit commitments maybe you are considering self sequestration.
You can apply for self sequestration if
Self Sequestration should be considered as a last resort. There may be other debt solutions available.
Debt Consolidation Questions and Answers
Debt Consolidation could be suitable for you if:
The Accountant in Bankruptcy (Scotlands Insolvency Service) is the body responsible for handling Bankruptcy and Insolvency in Scotland. They can also act as the Trustee in all sequestrations except when a private Insolvency Practitioner is appointed.
As mentioned above Sequestration should be carefully considered and classed as a last resort like any other Bankruptcy. There is also a legal Scottish Debt Solution known as a Trust Deed which you can read more about on this site, or contact us at Debt Advice for further information.
A more informal approach to dealing with your debts is a Debt Management Plan. This is normally suitable for those of you who have lower debts and can sometimes be useful as a temporary debt solution.
Like in Bankruptcy, a petition must be made by yourself (debtor's petition) or by your creditor/s (creditors petition) who you owe atleast £3,000 to in unsecured debt. You can apply via any approved money advisor.
Sequestration can vary in time of being set up, but it usually takes 2-3 months on average.
Your Credit Rating is likely to be affected before you enter Sequestration due to your financial situation. When you enter Sequestration you are normally discharged after one year. However, a note of your Sequestration will remain on your credit file for up to 6 years.
Your Sequestration will usually cost £200 for application and also any court fees. There are no exemptions or waivers from the admin fee, but you may get legal aid for the court fees if applicable.
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