What is Sequestration?

This is the Scottish term used for Bankruptcy and although very similar to a Trust Deed, there are some differences. It is a way to obtain debt relief, if you are struggling to make your financial commitments. This could be a good solution for you.

What does it involve?

It is a form of insolvency; a way to help you become free of any debts that you can no longer afford to pay. Once sequestrated, your assets are realised (or liquidated) by a trustee who deals with creditors on your behalf.

Find out if you qualify

What is the process of sequestration?

All applications for Sequestration are made to the Accountant in Bankruptcy (AIB). They have the final say on your application and will accept or potentially reject if they believe another solution would be more suited to you.

If your application is accepted, you will then be appointed a trustee who will deal with your creditors for you. If you can afford to repay something towards your creditors then there could be monthly repayments. This is decided by the AIB. This is called a Debtors Contribution Order, or DCO.

Once sequestration is granted, creditors cannot pursue legal action against you and should not communicate with you via any method other than with your Trustee.

How long does it take?

Providing you comply with the (AIB), you will normally be discharged from the restrictions of Sequestration after a period of 1 year. If you can afford to repay something towards your debts, this can last for up to 4 years.

What do I need to be able to apply?


  • Debt Write off although you could be required to make an affordable contribution from your earnings.
  • Creditor protection.
  • Discharged from the restrictions of Sequestration after 1 year.



Can I keep a bank account?

You can keep a bank account. Your bank could freeze or close your account if you have outstanding credit with them. It may be a good idea to change to a bank that you owe no money to.

Will my employment be affected?

The majority of the time, your job will not be affected however, it is recommended to check with your HR department first.

Can I keep my car?

If your car is worth less than £3000 and there is a legitimate need for the car. You will be able to keep it. If your car is worth over £3000, this is an asset that would be transferred to the trustee. Your Trustee would discuss options with you.

Can I keep my home?

If there is equity in your home, there is a possibility you will be made to sell it, in a worse case scenario. Your Trustee will discuss your options with you.

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