Scottish Certificate of Sequestration

The certificate for sequestration was introduced in November 2010 as a simpler route to Sequestration. One difference between traditional sequestration and the certificate of sequestration is you no longer need to prove your apparent insolvency. The LILA route may be applicable if you have apparent insolvency already. 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 £100 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, approved money advisors for DAS or your local authority money advisers

- 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 £100 fee. The process would then need to start over and a further £100 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 here, however it must be completed by an IP, approved money adviser, CAB or local authority money adviser.