What are the advantages to sequestration?
• Creditors will not be able to take further legal action against you, alleviating much of the pressure associated with being in debt
• Your Trustee becomes an intermediary between you and your creditors, dealing with all correspondence relating to your debts
• Once you are discharged you do not have to repay the debts which you had when you were made bankrupt, although there are some exceptions to this. You are still responsible for paying: fines, penalties, compensation and forfeiture orders imposed by any court; any liability due to fraud including benefit overpayments; any obligation to pay ongoing aliment; some students loans; and money owed to someone who holds a security on your property, such as a mortgage or secured loan.
• Apart from the exceptions listed above, your pre-bankruptcy creditors will not be able to take any legal action against you to recover their debts.