struggling with debts and looking for a possible solution to take back financial control in Scotland? See below our frequently asked questions on Sequestration, please note it is important to receive tailored debt advice before chosen a solution to resolve your debts which we can do for you by clicking the button below.

Please note if you are based in England, Wales or Northern Ireland the rules and solutions are different, an equivalent would be – Bankruptcy


How much debt must I have to apply for Sequestration?

To apply for Sequestration in Scotland you must owe £3,000, if you owe less than £3,000 and want to go through Bankruptcy a Minimal Asset Process (MAP) may be the best solution.

How long do I have to stay in Scotland to apply for Sequestration?

In order to qualify for Sequestration in Scotland you must be a resident or have lived in Scotland for at least one year.

I have been through Bankruptcy in Scotland before, can I do it again?

Yes! In Scotland to qualify for Sequestration you must have not been made Bankrupt in the last five years.

How much does it cost to apply for Sequestration?

In Scotland to apply for Sequestration, you must pay a £150 fee to the accountant in bankruptcy. This fee may be reduced to £0 for those receiving certain benefits, including when those benefits are not your sole income

How long does Sequestration last for?

Sequestration normally lasts for a year. During this time you must not borrow any more credit and you must inform the Accountant in Bankruptcy (AiB) of any change in circumstances. AiB are responsible for administering the process of personal bankruptcy in Scotland.
You may have to make a contribution from your earned income to your bankruptcy. This will be determined after your income and expenditure has been checked and will normally be for four years.  If your circumstances change you can ask the AiB to review this.

Will my details be registered anywhere with Sequestration?

Your details will be added to the Register of Insolvencies (ROI), for a period of five years.

Could sequestration affect my job?

Bankruptcy may have implications for your job. You won’t be able to act as a company director for instance. Usually, you can check the details of your employment contract to find out where you stand. If you’re concerned that bankruptcy may affect your employment, you must let your debt advisor know. 

Do I have to sell any assets with Sequestration?

There’s a chance that you’ll need to sell valuable assets such as a vehicle or your house. You can keep the things you need for day-to-day living.

What debts are written off in bankruptcy?

Most debts are written off by bankruptcy. Some debts will not be written off, including student loans, criminal fines, fraudulent debts and child maintenance arrears.