If you live in Scotland and you are unable to pay back unsecured personal debts worth in excess of £3,000, then you might be able to enter sequestration as a form of insolvency. This will help to alleviate the worst of your financial worries. Sequestration has already helped thousands of indebted people all over Scotland to get back on their feet.
What Is Sequestration?
Sequestration is essentially the Scottish version of bankruptcy. The laws involved are very similar to the bankruptcy laws in England, Wales and Northern Ireland. In simple words, sequestration is a form of insolvency designed to be used only as a last resort and when an individual is genuinely unable to meet their unsecured debt obligations in any way, and is unlikely to ever be able to.
Sequestration can be declared voluntarily by an individual who wishes to start afresh, Creditors can also force a party into sequestration in order to see debts they are owed repaid partially or in full. A creditor can follow this route if they are owed at least £3,000, which is the minimum threshold of debt required to sequestrate an individual.
Benefits of Sequestration
- You can be debt-free in a short amount of time
- All your unsecured debts are usually written off, though you may be required to make a contribution.
- You’ll receive no further contact from your creditors
- Most unsecured debts are included in sequestration bankruptcy
Risks of Sequestration
- Your assets like a car or a house may be sold to release funds for your sequestration
- It may have implications for your job
- It may be difficult to take out credit, as sequestration will be recorded on your credit file for six years
- Your details will be made available on a public register
Am I Eligible for Sequestration?
To be eligible for Sequestration you have to meet a certain criterion. You must:
- Have resided in Scotland for 6 months, although extra evidence may be requested to prove that you intend to stay in the country.
- Have the agreement of any creditors to whom you owe £1500 or more.
- Not have been sequestrated in the last five years and earlier
- Be classed as apparently insolvent, which could mean a creditor has issued a statutory demand or a charge for payment.
- You were not able to get your Trust Deed protected
- Obtained a Certificate of Sequestration
How Do I Apply for Sequestration In Scotland?
Making yourself bankrupt by applying for sequestration is a big step to take and requires expert debt advice, our team of friendly experts are on hand to help find the best solution to your debt needs. There is a fee of £200 which is paid to the Accountant in Bankruptcy (AiB). Depending on your circumstances you may be required to make payments for four years.
Find out whether sequestration bankruptcy is the right debt solution for you by completing our online form or speaking to one of our expert advisors 08000 566820. We’ll give you detailed advice tailored to your individual situation.
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Money Agent is committed to providing the best possible service to all those who need help with their finances. If you are struggling to make ends meet or perhaps have experienced a change in circumstances that have affected your ability to manage your finances, please contact us as soon as possible, we will complete a thorough, impartial examination of your individual situation and put you on the road to financial recovery.