Sequestration (Bankruptcy)
Sequestration is the Scottish name for Bankruptcy. It’s a formal court process which can be raised by you if apparent insolvency is constituted by any creditor who is due £1,500 or more provided the appropriate legal action has been raised.
Once you’ve been declared bankrupt, you lose control of all of your assets, which can be used to pay off your debts – including your home.
Before we would recommend Sequestration, we will analyse your financial affairs and possible alternative courses of action with you to resolve your financial problems.
The restrictions while you’re bankrupt include:
- It’s unlawful to incur credit over £250 without advising the lender
- You’re not allowed to start up or be involved in the day to day management of a limited company
- You’re not allowed to act as a member if parliament, council or school board
- All credit agencies automatically register Sequestration and you’ll be black listed for a minimum period of six years
- In certain circumstances, you can be in breach of your contract of employment terms eg Prison Services, Police Force.
The costs to cancel a Sequestration proceeding can be extensive as the action must be raised via the Court of Session.
Sequestration should only be used as a last resort once all other debt solutions have been considered.