Sequestration (Scottish Bankruptcy)

A debt solution available in Scotland that can help you write off debt that would otherwise take many years to clear.

Sequestration is a form of insolvency and may be suitable if you can’t pay back your debts in a reasonable time. Assets you own, such as your house or car, could be sold to pay off your debts.

If your assets are worth more than your debts, or if all of your regular payments are up to date and you can afford to keep paying them, sequestration may not be the right solution for you.

Minimal asset process (MAP) bankruptcy is cheaper and can be more straightforward than sequestration bankruptcy and may be an option to consider.

While sequestration may be the best solution to deal with your debts it’s important to understand the benefits and risks associated with it.

Benefits of sequestration

  • You can be debt free in a short amount of time
  • All your unsecured debts are usually written off, though you may be required to make a contribution
  • You’ll receive no further contact from your creditors
  • Your creditors can’t chase you for the money you owe them
  • Most unsecured debts are included in sequestration bankruptcy

Risks of sequestration

  • If you have any assets, like a house or car, these may be sold to release funds for your sequestration
  • It may have implications for your job – for instance you will not be able to act as a company director
  • You may find it difficult to take out credit, as sequestration will be recorded on your credit file for six years