What is Sequestration?

Sequestration, Scotland's Solution

Simply put, sequestration is a type bankruptcy that’s exclusive to Scotland. And very much a last resort solution.

If you can’t pay the debt you owe in a given time limit (which could be a number weeks or months), you may have to count on sequestration as a not-so-appealing option. It is a valid and often-used possibility all the same. Here, we’ll be as transparent as we can about sequestration. But remember, as with any type of debt, your first port of call should be a free, confidential chat with Solutions Scotland or visit us online for some immediate advice.

Like we said, Scotland’s bankruptcy laws are very similar but different to England, Wales and Northern Ireland’s bankruptcy laws. It’s most commonly used when someone cannot pay, under any circumstance, their debt solely by unsecured means. In other words, sequestration is settled with secured (rather than unsecured methods of payment such as a credit card) assets – your home(s), your car(s), sentimental heirlooms. Basically your tangible assets (but usually at a fraction of their value) at auction.

Do you qualify? It's up to the insolvency practitioner.

  • If you’re unable to pay back unsecured debts that are more than £1,500, sequestration could be your form of insolvency.
  • First – like any other solution you may be interested in, our superfirendly advisors will run through an income & expenditure along with a financial fact find that will allow our advisors to use all of their experience to advise you on a solution that actually does suit you!
  • Second – our debt superheroes will ask you for some documentation to confirm your financial situation.
  • Third – our helpful advisors will refer you case (with your permission) to a licensed insolvency practitioner who will present your case to the creditors & ensure the rules of insolvency are carried out on your case until you are discharged from Sequestration.
  • Plus You may find you’re in a better position (if you can afford to do so) by resolving the matter through a DAS (Debt Arrangement Scheme) or a Protected Trust Deed (PTD).
  • If sequestration is your only option, your IP will help you complete what’s called a ‘Debtor’s Pack’.
  • The IP will issue you with a Certificate of Sequestration and submit everything to an AiB (Accountancy in Bankruptcy).
  • The AiB will process your application and appoint you with a Trustee (you may appoint AiB as your Trustee in certain circumstances).

Find an insolvency practitioner you can trust

  • Your Sequestration is now in place – trust being the key word. Why? Your most valuable assets are now in their hands.
  • Your insolvency practitioner takes control of your assets, and works with you to decide what to sell – noting their value and if your debt can be repaid solely with your assets. Please note that your home or car/vehicle can be taken if the sum of your other assets do not cover the debt.
  • Your insolvency practitioner will work closely with your creditors – they have 60 days to tell them you’ve been sequestrated .
  • Your sequestration is legally binding, meaning your creditors cannot get in touch with you regarding the debt you owe.

There is some good news. If you’re in employment, you can make contributions to paying back your creditors for a period of 48 months

Can't Pay? We'll make sure they can't take it away

Well, at least we’ll try our best. We’re on your side and the best call in any debt crisis, is to call Solutions Scotland on 0141 739 8180

We’ll duly arrange the perfect time for you to speak with a Solutions Scotland Debt Advisor.

We’d like to stress that to be stress-free, we’re here to help and find you the most financially realistic repayment plan possible.

Solutions Scotland is a trading style of Milton & Stirling Ltd, Company Number SC587851 – Solutions Scotland, 78a Stanley Street, Glasgow, G41 1JH. DPA number ZA431921

Milton & Stirling Ltd are an Appointed Representative of MichaelAlan Ltd who are authorised & regulated by the Financial Conduct Authority, FRN 690939.

As part of our free service, we’ll review your financial situation, explain the available options and recommend a debt solution which is suitable for you. The risks of all suitable solutions will be explained clearly and if you decide to go ahead with a debt solution we will refer you to one of our trusted providers who specialise in the management of that debt solution. We’ll be paid for introducing you or for the preparatory work we do, depending on your debt solution fees may be payable if ongoing services are provided. Read about fees and key information in our terms & conditions. To find out more about managing your money and getting free debt advice, visit Money Advice Service , an independent service set up to help people manage their money.