Sequestration - Scotland only
Sequestration could be right for you if:
- You live in Scotland. (In England, Wales or Northern Ireland, the process is called bankruptcy)
- Your debts are so unmanageable you’d never realistically be able to pay them off
How Scottish Bankruptcy works
To apply for bankruptcy, you'll have to pay a £200 application fee (£90 for MAP) to the Accountant in Bankruptcy (AiB) and fill in the relevant forms. We can talk you through this process and explain everything else you'll need to do.
During sequestration, a trustee is appointed to administer the process. The trustee will look at your circumstances to decide what, if anything, you can afford to pay towards your debt. Your lenders will deal only with the trustee in relation to your debt.
If you have any money left over after you’ve paid all your essential living costs, you will be expected to make affordable repayments towards your debt for four years. And any property you own (including your home if you have equity in it) may be sold and used to pay back what you owe - although you can keep certain “essential” items like household goods or tools for work.
When you are discharged from sequestration, your outstanding unsecured debt is written off.
What will happen during sequestration?
Sequestration could help deal with debt you just can’t afford, but there are other consequences too.
- Sequestration can seriously affect your credit rating. It will appear in the publicly available Register of Insolvencies and will show up on your credit file for six years. You may be asked in future applications for credit or employment if you have ever been bankrupt
- If you do find a lender willing to offer you credit before you are discharged, you can't borrow more than £2,000 without telling them you are going through sequestration
- Bankruptcy can affect your employment opportunities and certain jobs (such as director of a company) are also ruled out
- If you're a homeowner, with equity in your property, it could be sold to help cover what you owe
Want to know if sequestration is the right solution for you?
Deciding to go through sequestration is a serious decision and we’re here to help give you professional advice.
Talk to us, there are lots of different ways in which we can help and we’ll always make sure we’ve considered all the options before you sign up to anything. If sequestration is right for you, we’ll support you every step of the way.
- 0161 669 8925
- 0161 669 8925