What is Sequestration (Scottish Bankruptcy)?

Sequestration is the Scottish version of bankruptcy and is a formal insolvency process, whereby a Trustee takes control of your assets and will deal with your creditors on your behalf. It is often an alternative to a Trust Deeds if you do not have enough disposable income.

Although depending on your circumstances you may be required to make a contribution for a period of four years. Any assets of value which may include the equity in your home have to be realised. In certain circumstances it is possible that you may be discharged at the end of one year.

So if you are in financial difficulty, Sequestration could be a good option for you.


There is a charge of £200 to go through a Sequestration. You might however be able to pay this in instalments.

Advantages of Sequestration

  • Once you have been sequestrated, creditors are unable to take any legal action against you or add any interest, charges or fees to the amount that they are owed.
  • Provided you co-operate fully you may be discharged at the end of one year.
  • If you are receiving welfare benefits, these will not be classed as income for the purpose of calculating your monthly contribution.

Disadvantages of Sequestration

  • Your credit rating may be affected and may affect your ability to obtain credit in the future.
  • If you are a homeowner and have equity in your property, or you have any other assets of significant value, your Trustee will be required to realise them.
  • Your Sequestration will be displayed on an online Register of Insolvencies which includes details of all “live” cases plus those that were discharged in the past two years.

Reduce Your Debt Repayments and Regain Control

< Check If I Qualify >