SEQUESTRATION (BANKRUPTCY)
SCOTLAND ONLY
* May not be suitable in all circumstances. Fees apply. Your credit rating may be affected.
Sequestration, commonly known as bankruptcy in Scotland, is a legal process that can help individuals who cannot repay their debts to write off most of the debts, giving them a fresh start.
Benefits
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Interest and other charges stop accruing once sequestration is granted.
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Creditors and Debt collectors must cease their efforts to collect payments from you.
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Most of your unsecured debts are usually written off.
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You are generally protected from further court actions by creditors once sequestration is granted.
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Professional trustees manage the sequestration process on your behalf, handling the administrative aspects.
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Essential household goods are typically protected, allowing you to retain necessary items.
Risks
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You may need to sell assets, including potentially valuable property, to repay creditors.
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You might be required to make monthly payments for up to 4 years, depending on your financial situation.
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Sequestration is recorded on the public register of insolvencies for at least 5 years.
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This will remain on your credit file for 6 years from the date it starts.
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It could impact your job, especially if you work in a role that requires financial responsibility or if your employment contract includes insolvency clauses.
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You’ll face restrictions when borrowing money, both during and after the sequestration period.
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It may be more difficult to secure a rental agreement, as landlord often check credit history and insolvency records.
Achieving debt freedom,
Starting with just 3 simple steps
Step1
Take the first step. Answer a few simple questions to give us an idea of your financial situation.
Step2
Speaking about debt can be tough. Our empathetic, trained experts will explain how we can help.
Step3
Once we’ve discussed your options, it’s over to you. By this point, debt freedom is in your grasp.
We’re ready to talk
* May not be suitable in all circumstances. Fees apply. Your credit rating may be affected.