What happens after you are discharged from sequestration (bankruptcy)?

Being discharged from sequestration represents a key moment in becoming debt-free, and signifies the beginning of an improved financial situation. The sequestration process may appear to be relatively short at 12 months when compared with other official debt relief procedures, but it doesn’t necessarily mean the end of your obligations at this time.

Your Trustee remains in office until they have realised your assets, completed all administration relating to your case, and ensured that creditors have recouped as much of their debt as possible.

How long does sequestration last in Scotland?

Bankruptcy in Scotland generally lasts for 12 months, after which time, if you’ve met all the terms and conditions you’ll be officially discharged. A specific form of sequestration, called the Minimal Asset Process (MAP), also exists for those with a low income and few assets, and its term is usually six months.

When you’re discharged from sequestration in Scotland you may have further financial obligations to meet, however, but this depends on your individual financial circumstances. In the case of a ‘standard’ bankruptcy rather than MAP, you might have to make ongoing payments to creditors, but in both cases you’re likely to face continued limitations on obtaining credit and other forms of borrowing.

You aren’t automatically notified of your discharge from sequestration, but you can request confirmation from the Accountant in Bankruptcy (AiB) for a small fee. Your Trustee is discharged from their role when all creditor claims have been satisfied, and they have dealt with all your assets.

If you need more information about bankruptcy in Scotland, and what happens after you’re discharged, we can provide professional guidance and advice from our experienced team. Scotland Debt Solutions operate from five offices around Scotland, and offer a free same-day meeting to discuss your situation.