Sequestration (Scotland Based Bankruptcy)

Dealing with Personal Bankruptcy in Scotland - Understanding Sequestration

The term Sequestration itself means much the same as bankruptcy in other parts of the UK. In many ways, Sequestration is Scotland’s version of bankruptcy and the Sequestration laws are very similar to the bankruptcy laws in England, Wales and Northern Ireland.

Sequestration may be suitable for you if you cannot maintain your minimum contractual payments to your debts and may be an option where you cannot afford the minimum payment required for a Protected Trust Deed.

How does Sequestration work?

In a Sequestration process, you have to hand over your estate (the things you own), including your home, to your Trustee. Your Trustee is the person who then administers your bankruptcy.

It is the responsibility of your appointed Trustee to sell your assets, such as money, savings, property, vehicles, life policies, jewellery and shares, in order to:

• Pay the costs of managing your bankruptcy and
• Pay your creditors as much as possible of what you owe them

You are able to keep some things that are essential for day-to-day living, such as clothes and furniture. You may also be required to make some payment from your ongoing income. Sequestration will affect your credit rating and will be recorded on your credit reference file for six years.

Advantages of Sequestration

• Pay only what you can afford to your debts
• You are discharged from your bankruptcy after one year, but must pay for four years
• Does not require you to appear in court
• Legally protects you from further enforcement action from your creditors

Disadvantages of Sequestration

• Entering Sequestration will negatively impact your credit score and remain on your record for six years which will affect your ability to access credit
• An insolvency practitioner will have control over your assets during Sequestration
• You will be banned from acting as a company director while undischarged

Where can I go for help?

If you feel Sequestration may be appropriate for you, click here to contact us so that your nearest Begbies Traynor Group Adviser can contact you to arrange a no obligation initial consultation, after which fees may apply. Other alternatives that may be available to you are trust deeds and debt arrangement schemes.

Begbies Traynor Group is Scotland’s leading independent, business rescue, recovery and restructuring specialist dealing with financial management and Personal Insolvency assignments of all kinds and is able to offer a personal and sympathetic approach to people’s financial problems.

With offices in Aberdeen, Dundee, Edinburgh and Glasgow, you are never far from expert help and advice. You can learn more about sequestration by visiting our dedicated personal insolvency website, Scotland Debt Solutions.

Complaints

We hope that you will be satisfied with the service that we provide, but we recognise that there may be occasions where you will not be satisfied with the way in which the matter has been dealt with. In those circumstances please refer to our Complaints Procedure.

For general information on dealing with personal debt, visit the Money Helper website.

Fees and Information

There are fees associated with our services. These will be fully explained before entering into any of the personal debt solutions referred to on this website. Full details of our fees and how these are charged are fully explained to you prior to you committing to any particular service.