Sequestration is the Scottish version of bankruptcy. The two are virtually identical. Sequestration is a way for individuals in Scotland to get rid of their debts and repay their creditors. If you’re in financial difficulty, sequestration could be a good option for you.
Sequestration is a form of insolvency and is designed to help you pay off debt you owe. Through it, control of your assets are transferred to an appointed trustee who would deal with your creditors on your behalf. Through sequestration, you would be able to write off any unsecured debt you have after a year.
After speaking to an insolvency practitioner or debt expert, like Trust Deed Scotland, your application for sequestration will go to the Accountant in Bankruptcy (AiB). They will approve your application for sequestration or reject it if they think another solution would be better for you.
If approved, a trustee will be appointed. The trustee will act on your behalf and deal with your creditors for you. The AiB will also set the level at which you will repay your debt. If you’re able to, this could be in the form or a monthly repayment.
After sequestration is approved, creditors cannot pursue legal action against you or communicate with you. Usually, you are ‘discharged’ from sequestration after one year.
Your acceptance will depend on the approval of the Accountant in Bankruptcy, (AiB), who may reject your application if they think another solution would better suit your needs.
There is a charge of £200 to go through a sequestration. You might be able to pay this in instalments.
Sequestration ends when you are ‘discharged’, usually a year after you’ve formally entered the process.
Yes. Usually, credit reference agencies will hold information about Sequestration for 6 years from when it was first granted. Your details will be also added to the Register of Insolvencies for 5 years.
It could do. If you have gone through Sequestration, you would not be able to be a company director.
Contact an expert money advisor at Trust Deed Scotland to find out more about the debt solutions available to you. We are here to help you decide the best course of action to suit your individual needs and support you every step of the way. If you would like a fresh start, get in touch today.