Sequestration (Bankruptcy)
Sequestration is the Scottish name for Bankruptcy. This can be raised by you if apparent insolvency is constituted by an creditor who is due £3,000 or more provided the appropriate legal action has been raised.
Once you’ve been declared bankrupt, you lose control of all of your assets, which can be used to pay off your debts this includes your home.
Before we would recommend Sequestration, we will review your financial affairs and possible alternative courses of action with you to resolve your financial problems.
The restrictions while you’re bankrupt include:
- It’s unlawful to incur credit over £500 without advising the lender
- You’re not allowed to start up or be involved in the day to day management of a limited company
- You’re not allowed to act as a member of parliament, council or school board
- All credit agencies automatically register Sequestration and you’ll be black listed for a minimum period of six years
- In certain circumstances, you can be in breach of your contract of employment terms eg Prison Services and certain Police Force.
Sequestration should only be used as a last resort once all other debt solutions have been considered.