A record that you have started sequestration (bankruptcy) will be listed on your credit file. This will have a negative effect on your credit rating and make it difficult for you to borrow money.

The record of your bankruptcy will remain on your credit file for 6 years. Your credit rating will not start to significantly improve until this time has passed and the record of your bankruptcy has been taken off your file.

In addition to the record in your credit file, a record of your bankruptcy will be included in the Edinburgh Gazette. This record will always remain in the Gazette archives which are publically accessible via the internet.

You should also remember that after you have been declared bankrupt you will stop making your normal monthly payments to your creditors. This means that your accounts will go into arrears or further into arrears. As a result of this your creditors are likely to issue you with default notices which will also be recorded on your credit file for 6 years.

Remember if you are insolvent and considering Sequestration, your credit rating is likely to become worse whether you start the solution or not. If you are in a position where you cannot pay your debts you are likely to start missing payments to your creditors even if you do not go bankrupt. As a result your credit rating will be negatively affected with missed payment and default notice records anyway.

If you start sequestration or any other debt management solution you have the opportunity to get your debts under control and work towards getting a better credit rating in the future.

Additional information

Only a brief overview of how Sequestration might affect your credit rating is given above. More information can be found here: Debt Solutions & Credit Rating

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