Sequestration
What is Sequestration?
Sequestration is the Scottish equivalent to Bankruptcy.
In Sequestration your creditors can ask the court to put your assets (including your property) into the hands of a Trustee. The Trustee would then look to sell these assets to recompense the creditors.
For the creditors to commence Sequestration proceedings, £3,000 or more must be owed by the debtor.
If the debtor themselves wish to apply for Sequestration then they must owe at least £1,500 and at least one creditor must have already have issued legal proceedings against them.
A Sequestration order typically lasts for a minimum of 1 year.
At the end of the term, all debts will have been written off and the individual will be debt-free once more.
Finally, please be aware that there are certain limitations imposed upon you if you are sequestrated. These would normally prevent you from:
- Obtaining credit of more than £250 without declaring that you are currently sequestrated.
- Being a director of a limited company or, indeed, be involved in managing a company.
- Holding certain public offices.
If you require any further information on Sequestration then please call one of our advisers on 0800 088 7502
