Sequestration

Following the boom of mis-sold PPI pay-outs in recent years, this is a question that is cropping up more and more often.

Sequestration is the Scottish term for bankruptcy, and is often seen as a last resort by those in personal debt.

The 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.

The nature of sequestration means that your husband or wife’s assets are placed under the control of a trustee.

If 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.

When 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.

In 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.

Sequestration typically lasts for a period of 12 months, although if you’re also paying a Debtor Contribution Order (DCO), repayments can continue for a further three years after discharge.

Despite optimistic reports that the economic situation is improving, sequestration levels remain high in Scotland when compared with pre-recession statistics.

When you enter sequestration you may have to make monthly repayments to your creditors from your residual income, in addition to handing over all your assets to the Trustee.