How sequestration works
In order to apply for bankruptcy, you’ll need to have a ‘certificate of sequestration’ issued to you by an approved debt advisor like us. We can provide you with a certificate of sequestration if it’s established that bankruptcy would be beneficial for you.
Alternatively, you can apply for bankruptcy if you’re ‘apparently insolvent’. This means a creditor has demanded full payment from you, but you’re unable to pay this.
The following situations show you’re apparently insolvent:
- You’ve been sent a ‘charge for payment' more than 14 days ago and you’ve not paid the debt
- You’ve been sent a ‘statutory demand’ more than 21 days ago and you’ve not paid the debt
A creditor could also make you bankrupt if you’re apparently insolvent and you owe them more than £3,000.
You may be eligible for bankruptcy if:
- Your debts total more than £3,000. If your debts are less than £3,000 you may be able to apply for a MAP bankruptcy.
- You’ve been a resident of Scotland or have lived in Scotland in the last year
- You haven’t been made bankrupt in the last five years