Sequestration (Bankruptcy)
A Sequestration is a Scottish legal term for personal bankruptcy
where you are formally declared Bankrupt by the Court.
Sequestration involves the transfer of your assets and property
into the hands of a Trustee for the benefit of the lenders.
The Trustee in Sequestration has a duty to sell the assets/property.
The Trustee may also seek a voluntary contribution from your income.
Self Sequestration
This can be done where you owe more than £1,500 and a lender
has served:
- a Charge for Payment and fourteen days notice have elapsed
or,
- a Statutory Demand and 21 days have elapsed or,
- an Earnings Arrestment as a result of a Charge for Payment.
Advantages
- Your lenders will no longer be able to pursue you or take
action against you to recover what you owe.
- The pressure of being in debt is reduced as all correspondence,
including any queries from lenders, is handled by the Trustee.
- You will not have to make further payments to your lenders.
Disadvantages
- Lenders have the right to receive any equity that you may
have in your home to repay your debts.
- Any assets you have must be released.
- If you are in paid employment you may have to make a monthly
contribution.
- If you acquire any money or property after the date of your
Sequestration and before the date of your discharge you will
have to surrender it to your Trustee.
- You are not allowed to incur credit.
- Your Sequestration will be noted on your credit file and you
may have difficulty in obtaining credit even after your discharge
Sequestration is one of several options available. If you are
unsure which step to take to solve your debt problems, CLICK
HERE to ask the opinion of our professional debt advisers.
This is a totally free and confidential service. |
