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Sequestration is a legal declaration that you are unable to pay your debts as they fall due, and you do not have enough assets to pay off the debts in full. Sequestration allows you to contribute what you can towards your debts, and after a certain period (usually three years) the remainder is written off.

This can be the right option for some people, but it has serious consequences. You may have to sell your home and other assets. The fact that you were made bankrupt will be on public record and will remain on your credit file for at least six years.

Advantages of sequestration

  • Stops creditors taking any legal action against you to recover what they are owed.
  • You can be debt-free in one to three years.
  • If you receive welfare benefits, these will not be taken into account when deciding if you should make a contribution from future income.

Disadvantages of sequestration

  • Your assets may be sold, including your car, home and personal possessions.
  • You cannot take out any credit over L500 until your sequestration is discharged, and you must inform the lender of your sequestration.
  • Your credit rating will be affected for at least six years. This will make it harder to take out a mortgage, open a bank account or apply for a credit card.
  • Information about your bankruptcy and the sale of your assets will be published in the Register of Insolvencies.
  • You may be ordered to make a contribution from future income for three years.

Sequestration can be avoided if advice is sought early on – Call 0141 227 7730 for sequestration advice, support and guidance.

Find out if you qualify for debt relief

  • Talk to an expert 0141 227 7730

Brought to you by Peter Dean


Peter Dean has helped thousands of people with quality money advice, through Your Debt Expert.

Peter Dean is one of the most highly-qualified and experienced debt solutions professionals in Scotland. He established Carrington Dean in 2001 following a distinguished financial career in which he became a Partner with one of the world’s leading accountancy firms and a recognised insolvency expert.

Peter is a Fellow of the Chartered Management Institute, a Fellow of the Association of Business Recovery Professionals, a Member of the Chartered Institute of Arbitrators, and a Member of the Insolvency Practitioners’ Association.


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Peter Dean