Is there life after sequestration?
July 22, 2013
Though 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 and advice on what the future holds.
Financial problems can hit anyone. Celebrities such as Kerry Katona and Martine McCutcheon have both fallen victim to substantial unpaid tax bills this year, resulting in both filing for bankruptcy. Former Westlife star Shane Filan, filed for bankruptcy in 2012 after a construction project he invested in ran out of money, and former Eastenders actor Joe Swash has declared bankruptcy twice in the past few years. So if you’ve lost control of your finances and have had no choice but to file for sequestration, you’re definitely not alone.
But what happens next? Though sequestration is often considered as ‘cutting your losses,’ it is by no means an easy way out. As a Scottish resident, it will remain on your credit record for six years from the date the sequestration began. This will undoubtedly make obtaining further credit very difficult, however, if you were already at the point of sequestration, this would also have had a negative impact on your credit rating.
Although sequestration generally lasts around 12 months before you’re released, it’s possible that you may be required to pay some money back for a maximum of three years. The payments could also increase if you are in full time employment and your wage increases.
You will still be liable for council tax bills, utilities and other bills; however any arrears accrued before your sequestration began will be written off. For anyone at the point of sequestration, this could be a huge relief. Our knowledgeable team at Scotland Debt Solutions can offer advice on what you are expected to pay when you file for sequestration and can help you through the process.
At Scotland Debt Solutions, we can offer advice and discuss what sequestration means for your employment. Some employment contracts may prevent you from working during and following sequestration and it’s important to discuss the next steps with a specialist adviser. In particular, sequestration has a significant effect on those working in a money handling occupation.
Sequestration is complicated, and if you’ve had no choice but to file for bankruptcy, it can be a daunting prospect. However, in the long term you will no longer have those relentless creditors chasing for payment and you can start again with your finances. Why not speak with Scotland Debt Solutions today to discuss your financial situation going forward. Our specialist advisers will be happy to offer you advice on budgeting and help to avoid further debt, so you can start to enjoy a debt-free life.
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