Sequestration is the most stringent form of insolvency in Scotland and is an option for you if you are unable to pay your debts as they fall due and can allow for up to 100% of your debts to be written off. A Trustee would take control of your assets and collect a contribution from your income, if applicable, for a 4 year period. You must take advice from an approved money adviser (such as an insolvency practitioner at Harper McDermott) prior to you applying for sequestration.
The various methods for applying for sequestration in Scotland are:
Regardless of your route into bankruptcy, all involve taking advice from an approved money adviser and making an application to the Accountant in Bankruptcy (AiB).
The application carries a fee of £200, paid to the AiB (can be paid in instalments)
The above routes are for an individual to make an application for bankruptcy, it is also possible for a creditor to take legal action against an individual that would end with the person being declared bankrupt.
If you decide that sequestration is the best option to deal with your debts, you would pay the application fee and send the application form to the AiB.
Your Money Adviser at Harper McDermott will help you complete the application forms and provide you with a Certificate for Sequestration before sending them to the AiB.
Your application will be reviewed by the AiB and, assuming it is accepted, your sequestration will be awarded. Once awarded, you will be protected from creditors taking legal action against you for recovery of debts owed to them.
Your trustee will then carry out their duties, primarily being to collect a contribution from your income for a 4 year period and realising any assets for the benefit of your creditors. Your contribution is set at the application stage and is reviewed every 6 months.
You are normally discharged from bankruptcy after 1 year, subject to your co-operation with your Trustee; however, if you can pay a contribution from your income, this will be paid for a 4 year period.
Contact an expert money adviser at Harper McDermott to find out more about the debt solutions available to you. We are here to help you decide the best course of action to suit your individual needs and support you every step of the way. If you would like a fresh start, get in touch today!