The certificate of sequestration was introduced by the Scottish Government as a way to help people who are struggling to find a solution to deal with their debts.

It can be a good solution for some people but it is usually a last resort and there may be other, more suitable options such as the Debt Arrangement Scheme, a Trust Deed or MAP.

Our team of helpful advisors will be able to tell you if it's the right option for you.


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  • You could write off your debts within 12 months*
  • Allows you to make a fresh start with your finances
  • Protection from creditors included in your sequestration


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£2,000 or under£30,000 +

What is Sequestration (Bankruptcy)?

Sequestration is a legal declaration that you cannot pay your debts.  If you are sequestrated, control of things that you own, including your home, is passed to your Trustee (the person who administers your sequestration) who may sell them to pay your creditors what they are owed.  If you are in employment, the Trustee may also ask you to make contributions from your wages.

You will normally be discharged one year after the date your estate was sequestrated.  After this time, your creditors included in the sequestration will not be able to pursue you for anymore payments towards your debts and they will be written off.

Once you have been discharged from your sequestration, you can make a fresh start with your finances.

How Sequestration Works?

You can apply for your own sequestration by submitting an application form along with evidence to the Accountant in Bankruptcy (AiB). 

For this to be happen, you must be able to demonstrate that you are unable to pay your debts as they fall due.  Alternatively your creditors can petition the court for your sequestration.

A Trustee will be appointed to administer your sequestration.  Your Trustee will ingather any significant assets you own, this may include your house, car and anything of high value, and then the Trustee may then sell them in order to pay the costs of managing your sequestration and your debts.

You will also be asked to provide a breakdown of your income and outgoings, and if you have money left over after all your essential living costs have been paid, you may be asked to make a contribution from your income too.

Typically, your sequestration will last 12 months and you will then be discharged from the debts included in your sequestration.  However, depending on your circumstances, you may need to continue to make a monthly contribution from your income for up to 4 years, this is called an 'debtor contribution order'.


Sequestration Advantages

  • Your debt will be written off once you have been discharged from the sequestration, this is usually after 1 year.
  • Your creditors will not be able to take any further action regarding the debts included in your sequestration.
  •  After the sequestration is complete you can make a fresh start with your finances•    
  • Our friendly qualified staff will be there to support you every step of the way.

Sequestration Disadvantages

  • Any assets of value i.e. Car, jewellery will be handed over to the 'trustee' and used to pay your creditors
  • Your credit file will be affected for 6 years (usually)
  • During your sequestration you will not be able to get credit over £500 without notifying the lender of your sequestration.
  • Your job could be at risk depending on what your profession is.
  • If you are a homeowner you may lose your home
  • Any inheritance you are due, windfalls you receive or savings you have whilst you are in the sequestration must be handed over to your Trustee.

Sequestration FAQ's

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