How sequestration works
Before you can apply for sequestration you need to:
- Owe more than £3,000
- 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 certificate for sequestration issued from an approved debt advisor.
- 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.
At StepChange Debt Charity we have approved debt advisors who can advise you on every debt solution available to you. If Sequestration is appropriate we can issue a certificate for sequestration as evidence that you can’t afford to pay your debts. We can also support you through the application for sequestration up until it is submitted to the Accountant in Bankruptcy. These services are completely free.
The fee for sequestration, paid to the Accountant in Bankruptcy, is £200. There are no exemptions or reductions so the full amount needs to be paid.
Sequestration normally lasts for a year. During this time you can’t borrow any more credit and you must let the Accountant in Bankruptcy (AiB) know if your situation changes. They're the governing body responsible for administering the process of personal bankruptcy in Scotland. You may have to sell valuable assets such as a vehicle, but you can keep the things you need for day-to-day living.
Your details will also be added to a public register, called the Register of Insolvencies (ROI), for a period of five years.
Making yourself bankrupt by applying for sequestration is a big step to take and requires expert debt advice.
If you haven't already received advice from us and are considering sequestration, 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 (free from all landlines and mobiles) and speak to one of our debt advisors.
Alternative debt solutions
While sequestration may be the correct solution to your financial situation, there are some other options that you might want to take a look at:
Is Sequestration right for you?