What is sequestration?
Sequestration is the name for bankruptcy in Scotland. It’s a formal debt solution that can help you clear your unsecured debts in 12 months. Sequestration may have serious implications and therefore it is important that you consider everything before you apply.
It can help if you have a lot of debt that would otherwise take a long time to pay back. So if you owe a lot more than you’re bringing in and you don’t have many assets to sell to clear your debts, sequestration may be worth considering.
You can apply for sequestration bankruptcy yourself or your creditors can force you into sequestration. If you have a Protected Trust Deed (PTD) and you don’t keep to the terms of this, this could also lead to sequestration.
Understanding sequestration
Because sequestration is a formal insolvency, it comes with some rules for you and your creditors. It also means that there’s a lot to think about before you consider starting it. Our ‘How does sequestration work?’ page should give you a basic and clear understanding of the sequestration bankruptcy process and how to apply for it. We’ll also take you through what will happen when your sequestration is over.
Sequestration isn’t an appropriate solution for everyone – it’s only right for people in specific circumstances. For example, if a creditor applies for your sequestration bankruptcy, you’ll need to have a minimum amount of unsecured debt for them to do this. We’ll explain the qualifying criteria on our ‘How do I qualify for sequestration?’ page.
It’s really important to think carefully before starting sequestration. There are both benefits and risks to sequestration. Read more about the potential consequences on our ‘Is sequestration right for me?’ page to see how sequestration may affect you.
When you’ve been through all of these pages, you should have an understanding of what sequestration is and whether it could help with your unsecured debts. Don’t worry if there’s something you still don’t understand though. Our ‘Sequestration FAQs’ page explains some of the most commonly asked questions.
We don’t offer a sequestration bankruptcy service but if we think it is the most suitable solution for you, we’ll signpost you towards the relevant free services for this.
Continue to the next section How does sequestration work?
