Sequestration is a legal order which confirms to your creditors you are unable to repay the money you have borrowed. Sequestration is only available to people residing in Scotland. The English, Welsh and Northern Irish equivalent is bankruptcy.

Scottish Sequestration

Couple argue about debt

In November 2010 the certificate of sequestration came into effect. This route to sequestration makes it simpler to proceed with your own sequestration.

Another route into sequestration is the Minimal Asset Process which became applicable on the 1st April 2015 to replace the Low Income Low Asset (LILA).

There are different qualifying criteria for the various routes into sequestration however the advantages and disadvantages are all relevant.

If you live in Scotland then you may not need to consider Sequestration, a Protected Trust Deed or debt arrangement scheme could be more suitable. More information can be found on our debt advice Scotland Page.

Scottish Sequestration Questions

People entering Sequestration often have a lot of questions about the debt solution.

The most common questions people have about sequestration are, how much does it cost, how will it affect my credit rating and how do i enter sequestration.

If you have any questions about Scottish bankruptcy and need advice our sequestration forum can help.

Benefits of sequestration

  1. Your creditors will no longer pursue you for payment
  2. All regular payments to your creditors will stop
  3. You will no longer need to liaise with your creditors, instead the insolvency company would do this on your behalf
  4. Should your sequestration be completed to the satisfaction of the insolvency company, then you will be able to start again financially.

Negatives of sequestration

  1. Any monthly disposable income you have will need to go towards your sequestration
  2. If you own valuable items, such as a house or car these may be sold
  3. You cannot act as a director of a limited company
  4. There are some occupations where you are restricted from going down the route of Sequestration.  Please check your employment terms and conditions
  5. Entering sequestration will have a negative impact on your credit rating, making it harder to obtain credit in the future

Criteria to enter sequestration

- Must owe at least £1,500 in unsecured debt

- You cannot realistically meet any other debt solution

- You will need "apparent insolvency"



Follow Us

Follow us on Twitter and Facebook to get the latest information about the charity and how we are helping people to resolve their personal debt problems. You can follow us socially by clicking the icon below and stay in touch with our progress.

facebook twitter

Debt Test

Our debt test is a unique system which can give you an answer to your debt problem in around 15 minutes, without having to speak to anybody.

Through answering a range of questions about your financial situation we can suggest solutions to your debt problem. Our qualified advisors can also help you with the pros and cons to each solution.