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What is Sequestration?

If you live in Scotland, then you’ll know that Sequestration is the term for Bankruptcy.

Just like Bankruptcy in the rest of the UK, Sequestration could help people in Scotland clear debts if they can no longer afford to repay their lenders.

Sequestration should always be a last resort when dealing with debt because of the affect it can have on your life. For example, you will lose your home and valuable assets like your car, which will be sold to help repay your lenders.

For some people it is the right solution for them, but we would always say that it is best to see if your debt problems could be resolved with a Debt Management Plan or a Protected Trust Deed.

If you’d like to talk about your money troubles with a friendly member of our team, get in touch; we’ll be happy to help you.


What Sequestration will do for you

Clear debts

If you really can’t afford to repay your debts, then Sequestration could be the answer to your debt problems. If you’re granted the Sequestration, you could be freed from your debts in 12 months.

Provides protection from lenders

Once you have been granted a Sequestration, your lenders can take no further action against you. They will no longer be allowed to contact you, which will help to ease the pressure of dealing with your debts.

Offers peace of mind

If your debt problems have affected your life, then dealing with these issues through Sequestration could give you peace of mind knowing your debts will soon be cleared.

What you need to know

Debts that can be included in Sequestration

Only unsecured debts can be included in a Sequestration, this means debts that are not secured against your property or something you own.

Included in Sequestration:

  • Personal loans
  • Payday loans
  • Store cards
  • Credit cards
  • Catalogue accounts
  • Bank overdrafts

In some circumstances…

  • Rent arrears (from previous properties or current housing association property)
  • Mortgage arrears
  • Council Tax Arrears from previous properties
  • Last year or the previous year’s Council Tax from current property

Excluded from Sequestration:

  • Mortgage repayments
  • Social funds and crisis loans
  • Hire purchase loans (e.g. car loans)
  • Secured loans
  • Utility bills
  • Student loans
  • Child maintenance
  • TV licence


If you are petitioning for your own Sequestration, you will have to pay an application fee of £100, this is payable to the Accountant in Bankruptcy.

Depending on your income, you may have to make monthly contributions towards your debts to help repay your lenders. This will be discussed with you before Sequestration proceedings.

Your property

You will lose your home and valuable property which will be sold to repay your lenders.

Your career

Sequestration could affect your professional life too as you could no longer be allowed to keep certain posts, for example within the financial services sector.

If you’re in doubt, you should always check with your HR department.

Credit rating

Your rating will be affected in the long term by clearing your debts through Sequestration. If you already have a history of missed or late payments, then your credit rating could already be affected.

You will find it difficult to secure credit in the future, for example if you apply for a credit card or loan.


If you want to open a bank or building society account or apply for a mortgage in the future, you will have to declare that you have been Sequestrated.

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Find the right solution

Answer a few simple questions and we'll help you find your solution.
  • Total unsecured debt: £500

  • This field is for validation purposes and should be left unchanged.

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