As soon as your sequestration is awarded (accepted), you’ll be legally protected from any further action from your lenders. All payments to your lenders will stop, and you’ll only have to make payments towards your unsecured debts if you can afford to.
If you are successfully discharged from your sequestration, whatever debt you can’t afford to repay (that’s included in your sequestration) will be written off.
As sequestration is a form of insolvency, it does come with consequences, some of which we’ve outlined below.
Entering sequestration will have a serious effect on your credit rating, which will affect your ability to obtain credit, now and in the future. It'll be recorded on the publically available Register of Insolvencies too. Your assets may be sold to help repay your debts, which could include your home if you’re a homeowner.
Depending on your occupation and/or your employer, sequestration could affect your employment or your membership of certain professional bodies. Other employers may ask you to declare if you’ve ever been bankrupt on job application forms (banks for example), so it may affect your career prospects, even after you’ve been discharged.