To apply for sequestration you must:
- owe more than £3,000
- have lived in Scotland during the last 12 months
- not have been through sequestration in the last five years
- have received advice from a qualified money advisor
- pay the £200 application fee
If your sequestration is awarded (accepted), a Trustee will take over rights to your assets, should you have any, and this may include your home. You may be required to sell them to repay your lenders, so if you have a property with significant value in it that you want to keep, speak to a debt expert about your situation, as another debt solution may be more suitable.
Once you're discharged from sequestration, all of your unsecured debts will be written off. You will, however, be expected to make contributions for up to four years, if you can afford to, and you’ll usually be discharged after 12 months.