Sequestration (Scotland Based Bankruptcy)
Sequestration is a form of insolvency that results in a person’s assets being transferred into the control of an appointed Trustee so that they can be used to satisfy creditors to the greatest extent possible.
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 three years
- Does not require you to appear in court
- Legally protects you from further enforcement action from your creditors
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 Adviser can contact you to arrange a free initial consultation. Other alternatives that may be available to you are trust deeds and debt arrangement schemes.
Begbies Traynor 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.
You will have the assurance of dealing with a leading Scottish firm with offices in Aberdeen, Dundee, Edinburgh and Glasgow. You can view further details about sequestration through our Scotland debt personal insolvency website.
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.