Sequestration – Scottish Bankruptcy

Sequestration is a legal term in Scotland which is the same as personal bankruptcy in England.  Sequestration is one way of dealing with debts a person cannot pay back.

The sequestration proceedings free a person in debt from overwhelming debts so he or she can make a fresh start.  This is of-course subject to some restrictions.  Sequestration also ensures all of your assets are shared out fairly among your creditors.

Either the person in debt or even one of his or her creditors can apply to the courts for a sequestration order to be made.  This is on the condition that the debt owed is £1,500 or more if a debtor applies to be sequestrated, or £3,000 or more if creditors apply for the Sequestration.

The person in debt must be ‘apparently insolvent’ which means the inability to pay their debts.  The creditors will usually have to prvide evidence that they have attempted to enforce the debt without success.

If a sequestration is granted, the court will then order that any assets of the debtor are transferred to a trustee.  The trustee will then attempt to dispose of those assets and any money raised goes to the creditors.

While sequestrated an individual is subject to various restrictions that affect their ability to obtain further credit.

A sequestration order is usually in place upon an individual for one year although they can be extended under certain circumstances.

Debt Affiliates