What is Sequestration

Sequestration is the Scottish term for Bankruptcy. It, like Trust Deeds, has its place in the debt solution market depending on your specific circumstance.

Many people we speak to tend to shy away from Bankruptcy, but it should not be discounted. Often is the case that people are just mis-informed about what Bankruptcy actually is and how it works. We are happy to explain the process in detail if you contact us. Alternatively, we have added a useful FAQ which might answer some of your questions. We have also set out some information below which you shall hopefully find useful.

The period of Sequestration is currently 4 years, as with Trust Deeds. There are certain restrictions which apply to you when you enter Bankruptcy and those restrictions generally include:

1. You cannot be a Director of a Limited Company;
2. You cannot obtain credit while Bankrupt;
3. You cannot sit, in most cases, in certain public office positions – such as a MSP or run for First Minister;
4. Bankruptcy will affect your credit rating, however, you will be able to repair this in good time.

Bankruptcy is a formal means in which to attend to debts you are not able to pay. In order to declare yourself Bankrupt

In order to make an application for Bankruptcy, you must fulfill certain criteria. Such as:

1. You must owe a total debt of at least £1,500, but no more than £17,000 for MAP. MAP is a Minimum Assets Process and will apply to you if your debts are under £17,000.00, a Money Adviser has deemed that you are not in a position to pay anything to your debts and you do not own any assets, such as a house.
2. If your debts are over £17,000, or you own assets valuing £2,000 or more, then you can only apply for bankruptcy under the full administration route. We can explain what this means in greater detail.
3. You must have received money advice from a money adviser.
4. You must be living in Scotland, have lived in Scotland or have established a place of business in Scotland, in the year immediately preceding the date of your application.
5. You must not have been made bankrupt in the last 5 years.
6. You must pay the application fee.

When you make the application for Bankruptcy, which we can assist you with, you are able to either appoint a Private Trustee, such as an Insolvency Practitioner working at J3 Debt Solutions, or you can allow the Accountant in Bankruptcy to act as your Trustee.

Many people we speak to tend to shy away from Bankruptcy, but it should not be discounted. Often is the case that people are just mis-informed about what Bankruptcy actually is and how it works. We are happy to explain the process in detail if you contact us. Alternatively, we have added a useful FAQ which might answer some of your questions. We have also set out some information below which you shall hopefully find useful.

The period of Sequestration is currently 4 years, as with Trust Deeds. There are certain restrictions which apply to you when you enter Bankruptcy and those restrictions generally include: