Sequestration Articles
Getting a mortgage after sequestration
21st February 2019Sequestration is a serious form of insolvency action, equivalent to bankruptcy in the UK, which can affect your chances of getting a mortgage. Once placed into sequestration, your assets and equity will be transferred to the ownership of a trustee who will manage the sale in order to release cash and repay creditors. After sequestration, […]
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What is a Bankruptcy Restriction Order? (BRO)
1st March 2018A Bankruptcy Restriction Order may be made against you if it’s believed that you acted dishonestly, recklessly or unlawfully before you were made bankrupt, or during your bankruptcy. Your Trustee will inform the Accountant in Bankruptcy (AiB), and if their suspicions are upheld, a BRO of 2-15 years can be made depending on the seriousness […]
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Can I remortgage while in a Trust Deed / Sequestrated / DAS?
10th November 2017If you’re a homeowner in Scotland, and are experiencing high levels of debt, your property may be affected when you enter a formal debt relief procedure. This doesn’t necessarily mean you’ll need to sell your home, however – you may be able to remortgage to provide additional funds for your creditors. If you have a […]
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How could sequestration affect my job?
3rd November 2017In many cases sequestration doesn’t affect a person’s job, and you may be able to carry on working with no adverse effects on your current or future employment situation. But because sequestration is a serious step to take, it’s worthwhile checking your employment contract for any clause relating to debt or bankruptcy prior to becoming […]
Read moreWhat are the consequences of sequestration (bankruptcy) in Scotland?
8th August 2017Sequestration is often a last resort for people in serious debt, and one that is taken only after all other options have been exhausted. There are many advantages for those who cannot see a way out of their current situation – sequestration provides a fresh start financially, and prevents further harassment from creditors. But you […]
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Sequestration explained for Scots with personal debts
22nd March 2017Sequestration is the Scottish term for bankruptcy, and is often seen as a last resort by those in personal debt. If you are considering applying for your own sequestration, or have creditors who are trying to force you into bankruptcy, you’re probably wondering what the process entails and how it will affect you. Here we […]
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Can I apply for my own sequestration?
22nd March 2017When you’re struggling to repay unsecured debt and see no way out of a dire financial situation, personal bankruptcy can seem like the only option. This process is known in Scotland as sequestration, and involves handing over your assets to a Trustee who sells them in order to repay your creditors. It is possible to […]
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New Figures Highlight Different Reasons Why Men and Women Enter Bankruptcy
4th January 2017The reasons why people enter bankruptcy around the UK are often very different depending on their gender. That’s according to new figures on the subject which show that bankruptcies among women are disproportionately related to ‘relationship breakdowns’ or a drop in their household incomes. Meanwhile, in the case of men, the financial difficulties of their […]
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What happens to my pension in sequestration?
21st December 2016When you enter sequestration, your assets are placed in the control of a Trustee who will seek to realise as much money as possible from them in order to pay your creditors. Your assets include things such as property, vehicles and cash savings. However when it comes to the money you have saved in your […]
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Advantages and Disadvantages of the Minimal Asset Process in Sequestration
8th November 2016If you are struggling to repay debt because you’re on a low income and have few assets to sell, the Minimal Asset Process (MAP) may provide a way out of this worrying situation. MAP allows you to claim sequestration, or bankruptcy; it can relieve huge financial pressure and allow you to start again. Other forms […]
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What is the impact of my wife or husband’s sequestration on me?
15th June 2016The nature of sequestration means that your husband or wife’s assets are placed under the control of a trustee. This is the person in charge of selling the assets to repay creditors. In general terms you are not liable for the debts of your spouse, and cannot be ordered to repay their creditors, unless a […]
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Former Scottish Footballer Duncan Ferguson Declared Bankrupt
1st February 2016Former Scotland international footballer, Duncan Ferguson – AKA Big Dunc – has been declared bankrupt at the High Court in London. A petition for bankruptcy against Ferguson was rubbed-stamped just last week and this comes at a time where the former player is still in a footballing role, as first team coach at Everton FC. […]
Read moreWould a bankrupt be able to keep an inheritance?
16th November 2015Being the beneficiary of a deceased estate in bankruptcy can be complex, and whether or not you keep the inheritance depends first and foremost on the deceased’s date of death. As far as an inheritance is concerned, your entitlement to the money or property starts on the date the person died. The Trustee appointed to […]
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The Bankruptcy Procedure in Scotland – Information for Debt-Help Seekers
2nd November 2015The bankruptcy procedure in Scotland is also known as sequestration. Both terms mean the same thing – an inability to repay your outstanding unsecured debts now, or in a reasonable future timeframe. Personal bankruptcy procedures in Scotland are administered by the Accountant in Bankruptcy (AiB). If you are struggling with debt and considering whether or […]
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Santa Claus Facing Bankruptcy As Lapland Office Struggles to Pay Its Debts
24th September 2015The Lapland office of Santa Claus, which receives hundreds of thousands of visitors each year, is facing bankruptcy as it struggles to service debts totalling around £140,000. Reports suggest that Santa Claus’ Lapland office has been hit by a downturn in visitors in the wake of the financial crisis that has hindered economies across much […]
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Wonga Writing Off Debts for 330,000 UK Customers
3rd October 2014The payday lender Wonga has announced it is to write off debts for 330,000 of its customers around the UK as a result of changing its policies on affordability and in response to ongoing discussions with regulators. The amounts being written off are reportedly worth around £220 million but the resulting losses to Wonga are […]
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Am I entitled to PPI compensation if I’m bankrupt / sequestrated?
16th January 2014Following the boom of mis-sold PPI pay-outs in recent years, this is a question that is cropping up more and more often. For the sake of this scenario, we’ll bypass your claim eligibility and assume that your case is progressing and compensation is due – just as it has been for hundreds of thousands of […]
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Bankruptcies fall in Scotland
7th October 2013According to new statistics from Scotland’s insolvency service, Accountant in Bankruptcy (AIB), bankruptcy figures in Scotland have decreased by 20% in the last year. The number of Scots taking out Debt Payment Programmes (DPPs) under the Debt Arrangement Scheme (DAS) has also increased by 40%. Over 4,600 DPPs were approved in Scotland in 2012-2013, which […]
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I recently filed for sequestration, how am I supposed to manage without a bank account?
27th August 2013Despite optimistic reports that the economic situation is improving, sequestration levels remain high in Scotland when compared with pre-recession statistics. For many individuals, unmanageable debts that forced them to declare bankruptcy (or sequestration in Scotland), means they are unable to carry out essential, day-to-day tasks such as paying bills via direct debit, and receiving wages. […]
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Is there life after sequestration?
22nd July 2013Though always considered a last resort, sometimes your debts can become too severe to manage, and bankruptcy (or sequestration in Scotland) is the only option to move forward. There is an abundance of advice on what to do to avoid sequestration, however, if you’re past the point of no return you’re probably looking for help […]
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How the Scottish Bankruptcy Reform could affect you and you debt
8th July 2013Scotland’s insolvency service, Accountant in Bankruptcy (AiB) published a report of proposed changes to bankruptcy legislation in November 2012, describing them as ‘a vision for debt advice, debt management and debt relief service in Scotland, fit for the 21st century’ and to provide ‘fair and proportionate’ debt relief for Scottish residents. The bill is expected […]
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I’m self employed but need help with my debts. What can I do?
28th May 2013Earlier this year, former Eastenders actress Martine McCutcheon became the latest self employed person to declare bankruptcy, after failing to ensure her financial affairs were up to date. McCutcheon declared herself bankrupt at Kingston County Court back in February, with debts of around £187,000. Commenting on the news, Una Farrell from debt charity Step Change, […]
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I’m on a low income and have few valuable assets, can I file for sequestration?
8th April 2013If you are feeling overwhelmed by increasing debt and relentless creditors chasing payments, you may have looked into the option of sequestration to write off your existing debt. But if you’re on a low income, you could have been turned away. When an individual files for sequestration, creditors are repaid by the selling of debtors’ […]
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Personal insolvencies in Scotland fall to a four-year low
15th March 2013If you’re suffering with personal insolvency worries, it’s always best to speak with a qualified adviser to help try to resolve your personal situation. However as personal insolvencies drop to their lowest level in four years, statistics from Scotland’s insolvency service, the Accountant in Bankruptcy, suggest that Scotland is cautiously optimistic about the future. Despite […]
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My debts have become unmanageable, will I face bankruptcy?
15th February 2013Accountancy firm PKF predicts that almost 400 people in Scotland will go bankrupt every week this year. It has calculated that over 2012 and 2013, about 20,000 Scots will have been sequestrated or have taken out a Protected Trust Deed because of their debts. Scotland has a personal insolvency rate almost twice that of the […]
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