Sequestration

Sequestration is the Scottish equivalent of Bankruptcy, which is a legal process usually suitable for people who little hope of paying back their debts in a reasonable time and whose circumstances are unlikely to change. Bankruptcy works different in different parts of the UK, so if you live in England, Wales or Northern Ireland please visit our Bankruptcy debt solution page.

Sequestration can give you a fresh start and will write off your debts however the decision should not be taken lightly as it can affect other areas of your life such as your employment or living arrangements. You could be asked to sell valuable assets such as your home or car, but you’ll be able to keep the things you need for day-to-day living.

Sequestration will usually least for 12 months and there are usually no payments required, however if you have any surplus income then payments are required under an Income Payments Arrangement which can last for up to 4 years.

Sequestration can give you a fresh start and will write off your debts however the decision should not be taken lightly as it can affect other areas of your life such as your employment or living arrangements. You could be asked to sell valuable assets such as your home or car, but you’ll be able to keep the things you need for day-to-day living. Sequestration will usually least for 12 months and there are usually no payments required, however if you have any surplus income then payments are required under an Income Payments Arrangement which can last for up to 4 years.

The Accountant in Bankruptcy (AiB) are responsible for administering the process of personal bankruptcy in Scotland. You need to have at least £3,000 debt to qualify and not have been made bankrupt in the last 5 years. If your debts are less than £3,000 then you may be able to apply for a Minimal Assets Process Bankruptcy (MAP). You can only apply for bankruptcy through an approved money adviser and the fee is £150 payable to the Accountant in Bankruptcy (reduced from £200 until at least the end of September 2020). You can pay in installments however you must have paid the fee in full before the application is made.