Bankruptcy in Scotland is often referred to as sequestration, and is a formal debt solution which can help you with unsecured debts.
If you currently live in Scotland, or resided their in the past 12 months, owe more than £1,500 in unsecured debts, and can’t repay your debts, you (or your creditors) can apply for sequestration.
Sequestration generally (but not always) lasts for just one year, but can have a serious impact on your life.
For the duration of your sequestration control of your assets will be passed to a trustee who is authorised to offer to sell any of your assets, with few exceptions, this is to pay for the cost of managing your case as well as to pay as much to your creditors as possible.
Even after you have been discharged from sequestration (usually a year), you may still be asked to make a payment from your income to go towards repaying your debts.
Due to the serious impact which sequestration can have on your life, it should be considered as a last resort when looking into clearing your debts – although if it’s the best solution, it’s the right choice.
Both during and after sequestration, you will find it extremely difficult to get any form of credit.
As with bankruptcy, your employment choices may be affected. Sequestration can have serious consequences and no one should consider applying without first seeking advice from professionals.
Finding the right debt solution can often be a daunting task – that’s where we come in!
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