At Trust-Deeds.co.uk we believe that Sequestration (the scottish term for Bankruptcy) should be only be used as a last resort to solving debt problems. If you cannot pay your credit commitments then Sequestration may well be the correct option for you. Alternatively, other solutions such as a protected trust deed or debt arrangement plan, offer different routes to help pay back your creditors without having to declare Sequestration and will not have the same damaging effect on your credit history.
See if you qualify ⇨Sequestration is a form of insolvency that results in a person’s assets being transferred into the control of an appointed Trustee so that they can be used to satisfy creditors to the greatest extent possible. Your estate means all the money that you owe, and any assets that you have.
Following your sequestration, the companies and banks that are owed money (your creditors) must deal with your Trustee. They are no longer allowed to pursue you or take action against you in respect of the money owed. Your Trustee’s responsibility is to realise assets and assess if you are able to afford to make a contribution from your income for a period of four years. Your Trustee will divide up the monies ingathered equally amongst your creditors, and they must write off the balance that they do not receive.
There is no legal requirement as part of the sequestration for your creditors to receive any payment. Sometimes they receive nothing. If your estate does not have sufficient funds to enable any payment to be made to your creditors, then they will legally have to write off all of what you owe to them. The legislation that allows this to happen is all contained within the Bankruptcy (Scotland) Act 1985.
Talk to us about your debtsSee if you qualify to reduce your debts into one affordable monthly payment
See if you Qualify ⇨