What is sequestration?
Sequestration is a serious debt solution which should only be considered after all other options have been examined. Sequestration is the Scottish equivalent to bankruptcy and has very close similarities. If you are entering sequestration proceedings, the court will appoint a Trustee who is legally obliged to release as much money from your estate for the benefit of your creditors. The sequestration process lasts for 3 years however your ability to be given credit will be affected for a much longer period.
Sequestration is the Scottish legal term for personal Bankruptcy. Strictly speaking it is an individuals estate that is sequestrated and an individual who is declared bankrupt although in practice the terms are used interchangeably. Sequestration offers the opportunity to make a fresh start in circumstances where the debts you owe are overwhelming and there is little prospect that you will ever be able to clear them or make an offer to settle them. Sequestration is sometimes seen as a last resort since it means any significant assets you may own, such as equity in your home if you are buying it, are likely to be used to help settle your debts. It also places some restrictions on your ability to obtain future credit, carry on business and hold certain public offices. You cannot act as a director of limited company or form a limited company or serve on the management board of a limited company throughout the term of your sequestration.
