Can I lose my home if I am sequestrated in Scotland?

Whether your property will be sold as part of the sequestration will depend on how much equity is within the house and whether you have any other significant assets which could be used to repay your debts. If there is minimal or no equity in the property, a nominal payment of £550 may instead be payable in order to remove the Trustee’s interest in it.

Your Trustee will have one year following your sequestration to decide whether or not to sell your property. They will then typically have three years to sell the property, although this period can be extended.

If your home is at risk of being sold, the court can delay or block the sale of your home altogether in special situations, such as when a disabled child lives there and the property has been adapted to meet their needs.

What happens if my home is jointly owned?

Before being sequestrated, you will need to tell anyone else named on the mortgage of your plan, as your bankruptcy will affect them too. Just because a property is jointly owned does not mean it is safe from being sold.

If your home is jointly owned, it will often be the case that your co-owner will be given the opportunity to purchase your share of the home. This will prevent the house from being sold; however, this will require your co-owner to have access to the funding – which may be in the form of a mortgage - needed to complete the purchase.