Debt advisers can help

To talk about debt with a friendly and supportive debt adviser, please complete the form below and we’ll be back in touch.

The certificate of sequestration was introduced in November 2010 as a simpler route to enter Sequestration. You can apply for sequestration if your debt problems have become unmanageable. 

Before taking any action to resolve your debts please call Debt Support Trust on 0800 085 0226 for friendly debt advice which is specific to your current financial situation. A certificate of sequestration may not be your best advice and there may be more suitable debt solutions available. 

Scottish Certificate of Sequestration

One difference between traditional sequestration and the certificate of sequestration is you no longer need to prove your apparent insolvency. The Minimal Asset Process (MAP) route may be applicable if you have a low income and low levels of assets. Your unsecured debt should be between £1,500 and £17,000 (£25,000 until March 2021) to be suitable for a MAP.

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 £3,000 in unsecured debt
  • You must pay a fee of £200 to submit your debtor application form. You would submit your certificate of sequestration at the same time
  • 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 and passport / driving licence (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 of Sequestration from Debt Support Trust and it must be completed by an IP, approved money adviser, CAB or local authority money adviser.

Certificate of Sequestration

A debt adviser can help

Our friendly and trained money advisers can explain whether a certificate of sequestration could be right for you. 

Get in touch via our contact form to find out more. You can also call our advice line on 0800 085 0226.

Certificate of Sequestration Case Study

Stuart, 53 years old, East Kilbride
Stuart called us in the Spring of 2020 after separating from his wife of 10 years he had run up a significant amount of debt. He was struggling to pay all of his household bills with only one wage coming in and keeping up with his debt had got harder.
He was in full time employment and had a disposable income, however his debt level was £54,000 and he would not be able to pay it back in a realistic period of time. His only asset was his vehicle, though this was valued at below £3,000 (so he would be able to keep it. It was decided that a Certificate of Sequestration was the best debt solution available to him.
It would cost him £200 to enter and he would have to make a monthly contribution towards his debt, though this was significantly reduced from his monthly contractual obligations.
Mark, 28 years old, Bothwell

When Mark first came to us in September 2019 he had a very complex story. He had been self employed between 2015 to 2018 as a sole trader but he was now working for a company as a full time employee.

Mark was married and had two children, his wife was also in employment. They lived in rented accommodation and owned a second hand vehicle worth £850. Although Mark had accumulated a lot of different personal debt his main concern was HMRC, who were threatening to take him to court over the debt and were his majority creditor.

Mark did have some disposable income which he could pay each month towards his debt, however to pay it all back would take too long a period of time. It was decided that a Certificate of Sequestration was his best route out of debt and this would stop HMRC from taking any further action.

Certificate of Sequestration FAQs

How Do I Apply For A Certificate Of Sequestration?

Money advisers working for an agency that has been accredited at type II of the National Standards for information and advice providers, such as:

  • Approved Money Advisers for DAS
  • CAB Money Advisers
  • Local authority Money Advisers
  • Insolvency practitioner

Can assist you with your certificate of sequestration. Your debtor application form and certificate of sequestration should then be submitted to the Accountant in Bankruptcy.

How Much Debt Must I Owe To Meet The Criteria For The Certificate of Sequestration?

You must owe £3,000, 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.

If you qualify for a MAP sequestration your unsecured debt must be between £1,500 and £17,000.

How Long Is The Certificate Valid For?

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.

Will The Advisor Charge For Their Time?

No, an advisor cannot charge for their time.

Do I Pay For The Certificate of Sequestration?

You do not have to pay for the Certificate of Sequestration but there is a charge when you submit your debtor application form of £200.