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What is Sequestration?

What happens during Sequestration?

Common questions

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Blog articles

Sequestration

Through our experience with Sequestration we know when it's the right solution. Quickly find out if it's right for you with our three simple steps

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Typical Example from all our customers who were recommended Sequestration

This average example shows how these customers’ payments were made more affordable each month.

Typical Example

Personal unsecured debt

£25,134

Number of lenders

8

Previous monthly debt repayments

£336

New monthly debt repayments

£148

We are able to reduce monthly repayments by carefully reviewing your finances and putting forward realistic recommendations to your lenders.

These figures are based on the averages across all Sequestration arranged for customers in 2014. We assess each customer individually based on their circumstances, and payments to the Sequestration are based on what is realistic and affordable.

With Sequestration you can be debt free in a short amount of time

Sequestration maybe suitable if you live in Scotland and your debts are so unmanageable you'd never realistically be able to pay them off.

A Scottish solution

Sequestration is the Scottish equivalent of Bankruptcy and is only available if you currently live in Scotland, or have lived in Scotland within the last year.

Conditions for Sequestration

You must owe more than £3,000 and cannot have been made bankrupt in the last 5 years.

Sequestration fees

The Accountant in Bankruptcy (AiB) charge an admin fee of £200. There are no exemptions or reductions so the full amount needs to be paid.

Payments under Sequestration

You will only have to make payments towards your unsecured debts if you can afford to do so. When you're discharged (usually 12 months), your outstanding debt will be written off so you can make a fresh start.

If you can afford it, You may also have to make affordable payments towards your debt for an additional 36 months.

Answer a few questions online, find out if Sequestration is right for you

Quickly find out if Sequestration is right for you

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Sequestration is available subject to eligibility and acceptance, alternative solutions may be offered. Fees payable if continuing services are provided. Our fees are explained here.

You'll receive no further contact from your creditors

What will happen during Sequestration...

Advice

Speak to one of our Money Advisors about your personal circumstances. We'll be able to advise if Sequestration is the most suitable solution for you.

Options

If Sequestration is the right solution for you, a trustee is appointed to administer the process.

The trustee will look at your circumstances to decide what, if anything, you can afford to pay towards your debt.

Proposal

The AiB will review your application and decide whether to accept it. Once accepted, your lenders will be made aware and they then can't contact you for payments throughout the term of your Sequestration.

Solution

Once you are discharged from sequestration (usually 1 year), your outstanding unsecured debt is written off.

Sequestration can have serious implications for your future and shouldn't be undertaken lightly

Answers to common Sequestration questions

Will it affect my credit history?

It will have a serious effect on your credit rating for up to 6 years and will appear in the publicly available Register of Insolvencies.

You will not be able to obtain more than £500 in credit at any time unless you declare to the lender that you are bankrupt.

Will my home be at risk?

If you're a homeowner, you will be expected to release any equity in your property to help repay your debts.

Will it affect my job?

It could also have an impact on certain types of jobs, for example, if you're a company director.

Show the answers

For further information about Sequestration Read more...

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We have helped over 400,000 people with a range of solutions - it's important we find the right one for you

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Find out if Sequestration is the right solution

Talk with your personal Money Advisor today

If you are interested or would like more information on Sequestration, talk through your options with one of our experienced money advisors

0161 413 9583

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Scottish Solutions

Debt Arrangement Scheme (DAS)

Trust Deed

MAP

Debt Management Plan (DMP)

Debt Consolidation

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Based on Feefo.com reviews - 95% of customers who left a Debt Advisory Centre review recommend us with an average rating of 4.8 out of 5 from 185 reviews left by Debt Advisory Centre customers (as of Jan, 2016)