If you have a debt problem, one of your options for sorting it out might be Sequestration. Sequestration is an insolvency option for those in severe financial difficulties who cannot repay their debts in a realistic period of time. Sequestration is a solution only available in Scotland.

Remember, Sequestration might not be your only option and it might not be the most appropriate debt solution for your needs. Our trained advisors can assess your financial situation and help you find the most suitable option for you.

Listed below are some of the Main Advantages & Disadvantages of Sequestration

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  • Once you have been sequestrated, included creditors are unable to pursue you or take any legal action against you to recover what they are owed

  • Your Trustee (this may be an IP or the Accountant in Bankruptcy) will contact your creditors on your behalf

  • Provided you co-operate fully, the Accountant in Bankruptcy may grant your discharge at the end of one year

  • If you are receiving welfare benefits, these will not be classed as income for the purpose of calculating your monthly contribution

  • Your included debts will be written off once you have been discharged


  • Your sequestration will be displayed on an online Register of Insolvencies, which the public can search

  • Your credit rating may be affected and sequestration may affect your ability to obtain credit in the future

  • If you are given money as a gift, you must inform your Trustee. Depending on the amount, you may be required to make this available for your creditors

  • The fee for sequestration, paid to the Accountant in Bankruptcy, is £200

  • If you are a homeowner or have assets these could be sold to pay towards your debts