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i This solution is only available in Scotland.

Sequestration (Scottish bankruptcy)

Bankruptcy can help you write off debt that would otherwise take many years to clear. In Scotland this is sometimes referred to as sequestration.

Bankruptcy works differently depending on where you live in the UK. If you live in England, Wales or Northern Ireland the fees and processes are different, you can find out how it would work for you on our bankruptcy page.

Bankruptcy (sequestration) is a form of insolvency so your unsecured debts need to outweigh your assets, such as property or vehicles. Unsecured debts include things like credit card debt, personal loans and store cards.

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How bankruptcy works

Before you can apply for bankruptcy (sequestration) you need to:

  • Owe more than £1,500 (increasing to £3,000 from April 2015)
  • Be living in Scotland or have lived in Scotland sometime during the last year
  • Not have been made bankrupt in the last 5 years

You can apply if you’ve received one of the following:

  • A decree and a ‘charge for payment’ served on you and the 14 days allowed for payment have passed without you making a payment
  • A ‘summary warrant’ to recover rates or taxes and an attachment or an exceptional attachment order has been made against items you own and the 14 days allowed for payment have passed without you making a payment.
  • A certificate for sequestration has been issued from an approved debt advisor.

Because we’re approved debt advisors we can give you a certificate for sequestration as evidence that you can’t afford to pay your debts. 

The fee for bankruptcy (sequestration) is £200. There are no exemptions or reductions so the full amount needs to be paid.

Bankruptcy normally lasts for a year. During this time you can’t borrow any more credit and you must let the Accountant in Bankruptcy know if your situation changes. You may have to sell valuable assets, but you can keep the things you need for day-to-day living.

Bankruptcy (sequestration) advice

Making yourself bankrupt is a big step to take and requires expert debt advice.

If you’re considering bankruptcy, you can use our online Debt Remedy tool, which will provide you with the best solution to your debt problem in just 20 minutes. Or, if you’d prefer to speak to us, call our free Helpline on 0800 138 1111 and speak to one of our Scottish debt advisors.

Sequestration FAQs

Will it affect my job?

This depends on who you work for and your role. It’ll state in your employment contract if bankruptcy will affect your job or you can ask your HR department. If you declare yourself bankrupt you won’t be able to be director of a limited company.

Will I lose my home if I make myself bankrupt?

If there is equity in your home then you could be made to sell it.

Are any debts excluded from bankruptcy (sequestration)?

Yes. The following debts can’t be included in bankruptcy: Student loans, court/magistrates fines and on-going child support payments.