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
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.
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
- Your creditors will no longer pursue you for payment
- All regular payments to your creditors will stop
- You will no longer need to liaise with your creditors, instead
the insolvency company would do this on your behalf
- Should your sequestration be completed to the satisfaction of
the insolvency company, then you will be able to start again
financially.
Negatives of sequestration
- Any monthly disposable income you have will need to go towards
your sequestration
- If you own valuable items, such as a house or car these may be
sold
- You cannot act as a director of a limited company
- There are some occupations where you are restricted from going
down the route of Sequestration. Please check your employment
terms and conditions
- 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 for the Minimal Asset Process route or £3,000 for
full administration Sequestration
- You cannot
realistically meet any other debt solution
- Not have been made bankrupt in the
last 5 years