The certificate for sequestration was introduced in November 2010 as a simpler route to Sequestration. You can sequestrated yourself in order to manage your debt problems.
Before taking any action to resolve your debts please call Debt Support Trust on 0800 085 0226 for debt advice specific to your situation, as a certificate of sequestration may not be your best advice.
One difference between traditional sequestration and the certificate of sequestration is you no longer need to prove your apparent insolvency. The MAP route may be applicable if you have a low income and low levels of assets.
The qualifying criteria for the certificate of sequestration includes;
- You must live in Scotland (or have lived in Scotland within the last year)
- You must not have been bankrupt in the last five years
- Owe at least £1500 in unsecured debt
- You must pay a fee of £200 to submit your certificate of sequestration to the Accountant in Bankruptcy (AIB)
- To receive the certificate you must use an insolvency practitioner (IP) or someone who works for the IP and has been given authority to act on his behalf. You can also visit your local CAB or an approved money advisor who can complete the Certificate of Sequestration on your behalf.
- Only the person in debt can be granted the certificate - creditors cannot apply for this
- On the day the certificate is granted the person in debt then has 30 days to apply for their bankruptcy. All applications made after the 30 days will be rejected and they will lose their £200 fee. The process would then need to start over and a further £200 would be charged.
- The debtor will be required to provide evidence with their application to help the AIB so that identity can be confirmed and that they qualify for the bankruptcy. Acceptable evidence will be payslips, bank statements, proof of benefits if applicable.
- Also required would be tenancy agreements and HP agreements if they have any.
You can get a copy of the Accountant in Bankruptcy Certificate for Sequestration from Debt Support Trust and it must be completed by an IP, approved money adviser, CAB or local authority money adviser.
Money advisers working for an agency that has been accredited at type II of the National Standards for information and advice providers.
You must owe £1500, be living in Scotland (or have lived in Scotland in the last year) and you must not have been made bankrupt in the last five years. There is also a fee of £200 which you must pay.
From the date of signature on the certificate, you have 30 days (the date of signature is counted as the first day) in which to apply for your Bankruptcy. Applications made after the 30 day period will be rejected and you would lose your £200 fee.
No, an advisor cannot charge for their time.
You do not have to pay for the Certificate of Sequestration but there is a charge to cover the bankruptcy administration of £200.