Can I apply for my own sequestration?

How to apply for your own bankruptcy in Scotland?

The process of applying for sequestration is relatively straightforward, and involves the completion of a debtor’s petition form. This form is sent to the court along with the Certificate of Sequestration which proves your insolvency – the certificate is valid for 30 days from the date of issue. Your money advisor will be able to assist you in completing the form, and advise on procedures once the court has granted your sequestration.

What are the advantages of applying for your own sequestration?

• Sequestration removes the considerable stress and worry of creditor action, as all unsecured debts are written off when you are discharged • It allows you to start afresh financially
• You don’t need to contact your creditors again, as your Trustee deals with them
• If circumstances change and your disposable income drops, financial contributions can be adjusted accordingly

Disadvantages of choosing sequestration 

• Your major assets may come under the control of your Trustee
• Sequestration affects your credit rating for six years or more
• It is a public process, and will be recorded in the Register of Insolvencies
• Your job may be affected as some employers don’t allow their employees to get into debt
• Not all unsecured debts can be included when you are sequestrated
• Any windfalls or other significant financial gains such as an inheritance, may need to be paid over to your Trustee during the period of sequestration

Scotland Debt Solutions works solely on behalf of Scottish residents and can offer further guidance on the sequestration process. Call one of our experts to arrange a free same-day meeting in complete confidence at one of five offices around Scotland.