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Sequestration

Finding out if sequestration is the right option for you will be down to many different factors...

Sequestration could be right for you if:

You live in Scotland. (In England, Wales or Northern Ireland, the process is called bankruptcy)

Your debts are so unmanageable you’d never realistically be able to pay them off

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

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We’ll listen to understand your current situation; then we’ll make an expert recommendation based on what you’ve told us – and we’ll be with you every step of the way.

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

Sequestration explained

Sequestration is a type of insolvency that provides relief from unmanageable debts for people who will just never be able to pay back what they owe in a reasonable time.

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During sequestration, 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. Your lenders will deal only with the trustee in relation to your debt.

If you have any money left over after you’ve paid all your essential living costs, you will be expected to make affordable repayments towards your debt for four years. And any property you own (including your home if you have equity in it) may be sold and used to pay back what you owe - although you can keep certain “essential” items like household goods or tools for work.

When you are discharged from sequestration, your outstanding unsecured debt is written off.

A typical example of sequestration

Last year we helped thousands of people with their debt. But because everyone’s situation is different, the way we tackled each problem was different too. For many of our customers, who live in Scotland, the right solution was sequestration.

From all the customers who were recommended sequestration in 2014 and required to make payments, here’s an average example which shows how these customers’ payments were made more affordable each month.

Unsecured personal debt: £25,133.76
Number of lenders: 8
Monthly debt repayments before: £336.48
Monthly debt repayments now: £147.94
Monthly reduction: £188.54 (56%)

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 for Sequestration are based on what is realistic and affordable.

Our fees are explained here

What will happen during sequestration?

Sequestration could help deal with debt you just can’t afford, but there are other consequences too.

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1. Sequestration can seriously affect your credit rating. It will appear in the publicly available Register of Insolvencies and will show up on your credit file for six years. You may be asked in future applications for credit or employment if you have ever been bankrupt

2. If you do find a lender willing to offer you credit before you are discharged, you can't borrow more than £2000 without telling them you are going through sequestration

3. Bankruptcy can affect your employment opportunities and certain jobs (such as director of a company) are also ruled out

4. If you're a homeowner, with equity in your property, it could be sold to help cover what you owe

Want to know if sequestration is the right solution for you?

Deciding to go through sequestration is a serious decision and we’re here to help give you professional advice.

Talk to us, there are lots of different ways in which we can help and we’ll always make sure we’ve considered all the options before you sign up to anything. If sequestration is right for you, we’ll support you every step of the way.