Sequestration in Scotland is a form of insolvency and is designed to help you pay off unaffordable debts that you owe your creditors.
Through sequestration in Scotland, the control of your assets are transferred to an appointed trustee who would deal with your creditors on your behalf.
Once you’ve been sequestrated, you would be able to write off any unsecured debt you have after a year. If you’re in severe financial difficulties, sequestration could be a good option for you.
After speaking to a debt expert, like DAS Scotland, or an insolvency practitioner, your application for sequestration will go to the Accountant in Bankruptcy (AiB). The AIB is the government created body that oversees insolvency regulation in Scotland.
They will approve your application for sequestration or reject it if they think another Scottish debt solution would be better for you.
If the sequestration is approved, a trustee will then be appointed. The appointed trustee will act on your behalf and deal with your creditors for you.
The Accountant in Bankruptcy will also set the level at which you will repay your debt. If you’re in a position to, this could be in the form or a monthly repayment.
After you have been sequestrated in Scotland, your creditors then cannot pursue legal action against you or communicate with you. Typically, you are ‘discharged’ from sequestration after one year.
This process is almost identical to the more commonly known process in the rest of the UK called Bankruptcy.
