Will sequestration affect my employment?
This will depend on the job you have or intend on doing.
Whilst you are going through your sequestration, you are prevented from holding certain positions, such as school governor or company director. It can also affect certain positions, such being a financial advisor or solicitor, or may affect your membership of some professional or licensing bodies. It's best to speak to your HR department or to your employer before you apply for your sequestration to see if your position will be affected.
Once you've been discharged, the restrictions imposed during your sequestration should be removed, but there is the possibility that it might have an impact after you've been discharged, as some employers may ask you whether you've ever been sequestrated when you apply for a job.
Can I borrow money after being sequestrated?
Yes. Once you've been discharged, you can apply for credit. Remember though, sequestration will stay on your credit history for six years from the time it is awarded, so it's likely to be harder or more expensive to borrow money for that period and you may incur a higher rate of interest. Some lenders might ask if you've ever been sequestrated, so it could affect you beyond that too.
What is the Register of Insolvencies?
The Register of Insolvencies is a publicly available register that contains details about individual insolvencies in Scotland. If you're entering sequestration, the Register will show details such as your name, occupation, date of birth and details of your sequestration. The information will stay on the register until two years after your Trustee is discharged (after they have finished administering your sequestration) or five years after you're discharged – whichever comes first.
Could a lender sequestrate me?
They can. You would need to owe the lender £3,000 for them to put a creditor petition forward, or more than one lender with a total owed to them of £3,000 or more. There are other conditions that they must satisfy too. If you're concerned about this happening, speak to an expert, as there may still be an opportunity to stop the sequestration going ahead.
Can sequestration affect getting a bank account?
Many banks run credit checks on anyone applying for a current account with them and as a result, you may find it difficult to obtain an account after you've been sequestrated. Other options are available however, such as a basic bank account, which you can find out more about here.
I'm due to receive some money, will that need to be paid into my sequestration?
If you receive a windfall, such as inheritance or a lottery win, any time in the 4 years after the date of your sequestration being awarded, you will normally have to pay this to your Trustee for distribution amongst your lenders and to cover the cost of your sequestration.