Sequestration is the term used to describe Bankruptcy in Scotland. If you live in Scotland, it is the solution which can be used for dealing with unsecured debts which you are simply unable to repay in a reasonable period of time.
Once you go Bankrupt you do not have to pay anything towards your debts unless you can afford to do so. If you can afford to make a monthly payment towards your debt then these payments will only last for a maximum of 3 years. After that your debts are taken away from you and you are no longer liable to repay them.
Traditionally Bankruptcy has been seen as a last resort for dealing with debt. However changes to the bankruptcy rules over the past few years have meant that bankruptcy has become a much more attractive and sensible debt management solution for many people.
Sequestration is also an option which can be seriously considered by homeowners. Declaring yourself bankrupt does not automatically mean that you will lose your house particularly if there is little equity or the property is in negative equity.
If you would like help or advice about Sequestration please give us a call on 0800 088 7376 or complete the form below to speak to one of our experts
As well as the information found on this website the Accountant in Bankruptcy (the Scottish Government’s Insolvency Service) has also produced two guides to personal debt solutions which you may also find useful: Debtor’s Guide and Debt and the Consequences.
The Money Advice Service (MAS) are an independent service set up by the Government to provide people with free advice about all aspects of personal finances. For help from MAS if you are struggling with debt please follow this link: MAS – Help if you are struggling with debt.
It is also recommended that you read this one page document produced by MAS entitled “Dealing with debt – 5 things you should know”.
More information about the Sequestration solution is available in the left hand column. However only a brief overview is given here. For more details and advice please see one of our dedicated information websites:
WTFS can advise you about whether Sequestration (Bankruptcy) is the right debt solution for you however we do not provide an in house service to help you. You will normally need to get a Certificate for Sequestration from an approved Money Advisor. You then have 30 days to apply for your Bankruptcy at the court.