Deciding to opt for Sequestration – also known as bankruptcy – is one of the hardest decisions you will have to make. It can seem like a scary prospect but it’s a genuine, legal, and sometimes necessary process designed to bring people out of financial ruin and back onto a solid financial footing.
Although declaring yourself bankrupt is a difficult step to take, in some cases it is the most appropriate option for an individual’s needs and financial position. In situations of dire financial distress, both time and stress can be saved by opting for sequestration.
Regardless of the reasons behind your financial distress, sequestration might be the best option to take providing you are a Scottish resident with high levels of debt that you can’t afford to repay and no assets to sell. However, before you go down this road, you need to be absolutely sure it is the most appropriate solution to your current financial difficulties.
Our specialist insolvency advisors can help you understand more about the sequestration process and whether it’s right for you, particularly when compared to other common Scottish debt help solutions such as Debt Arrangement Schemes (DAS) and trust deeds.
While sequestration does have a number of significant drawbacks, the process does come with some key advantages too.
You may not have to sell all of your assets; for example, if you are a sole trader you can keep tools or essential work items so that you can carry out your job. You can also keep essential items for general day-to-day living such as clothes, furniture, cooking utensils, and children’s toys.