Are You Ready For The Long-Term Considerations That Come With Sequestration?

If you’re on of the many considering going through sequestration, Scotland’s term for bankruptcy, there’s a good chance that you’re in serious debt and have no other options open to you. While there are many benefits to this process for those in this position, there are also some ramifications that have to be considered against the possibility of a fresh financial start and freedom from creditor harassment. If you currently owe more than £3,000 and are considering making a declaration of bankruptcy, you’ll need to consider the possible consequences so you can be prepared to manage them.

What Are The Potential Consequences?

Working With A Trustee And Determining How Much You Can Contribute To The Debts

Beginning the process of sequestration generally means that you’ll be going through a year-long process (shortened only if you qualify for MAP, or the Minimal Asset Process) during which you will be working with a Trustee. The Trustee’s job is to decide if your debts should be discharged and what if any amount you can contribute to the debts on an ongoing basis. This involves the handing over of your assets to the Trustee and cooperating with them to make these determinations.

If it is determined that you can pay some portion of the debts, then you will receive a Debtor Contribution Order that can last up to 4 years. Keep in mind that the amount indicated in this order is negotiable based on your changing circumstances throughout this period, whether for better or worse.


As indicated above you’ll need to release your assets to your Trustee. These assets can include vehicles, property, shares, and savings, among any other valuables you may possess. In addition to surrendering your assets you may need to consider the following:

If your home has sufficient equity in it to cover the debt, you may be required to put it up for sale. If you’re renting your home, you may need to check the tenancy agreement to determine whether or not you’re at risk for eviction as the result of sequestration.
• If your vehicle is your sole mode of transport to work and it is valued below £3,000, then you may be allowed to retain it.
• All your credit and debit cards, building society and bank accounts will need to be passed to your Trustee. This can result in the closure of these accounts if your bank is one of your creditors.

Windfalls and Inheritance

In the four year period following the beginning of your sequestration any form of financial windfall, whether from the lottery or inheritance, must be revealed to the Trustee you were working with to repay your creditors.

Credit and Credit File Access

During the process of sequestration you will be denied access to borrowing or credit, and in the six years to follow it is likely that you will be unable to obtain credit of any kind. Following this period it can still be difficult as creditors tend to avoid giving credit to someone who has gone through sequestration. It is vital that you work diligently to improve your credit rating, but it will take time to accomplish.

Problems With Employment and The Public Register

When it comes to bankruptcy, Scotland’s Register of Insolvencies retains information about sequestrations that are currently underway or have been discharged in the last two years you may experience problems with your employment. If you are presently a member of law enforcement or work in the financial sector, you may find yourself discharged and unable to get work in your given field until this public disclosure passes.

Help Is Available

If you’re considering going through the sequestration process, it’s essential that you find a sequestration firm to help you. When you’re working with a team of specialists who are familiar with this process, you’ll know that every avenue available has been considered to help protect you and your assets during this trying time.