The fear and anxiety caused by uncontrollable debt and limited options for those who do not meet the criteria for other solutions cause great strain for thousands, but our dedicated team of experts are experienced in using Sequestration to set personal finances straight to allow for financial freedom.
Contact our team today if you feel Sequestration is the solution for you. They are ready and waiting to guide you through your options and towards financial recovery.
What is Sequestration?
Simply put, Sequestration is the Scottish form of Bankruptcy. It is used for residents in Scotland with more than £3000 of unsecured debt, which they are unable to repay.
Though a drastic measure, Sequestration has many advantages and, when used successfully, can lead you to life after debt and the prospect of future financial security.
How does Sequestration work?
Sequestration bears many similarities with the laws around Bankruptcy in England, Wales and Northern Ireland. It is a form of insolvency and should be used only as a last resort when your debts cannot be paid and you are unlikely to be able to service them through another financial recovery solution.
Sequestration can be declared voluntarily by a person struggling with their debt, or it can be forced by a creditor in order for the debt to be paid. In order for a creditor to do so, they must be owed at least £10,000 when compared to your own threshold of £3,000.
If you owe between £1,500 and £25,000 there is a “mini bankruptcy” in Scotland called the Minimal Assets Procedure. But strict criteria apply to this too.
Why choose Sequestration?
Through Sequestration you can take steps to become debt-free quickly, and with most unsecured debts included in the process. At the end of the process, you will no longer have the strain of being contacted by your creditors and your unsecured debts will be written off, though you may be required to pay a further contribution.
Before choosing Sequestration, however, it is vital you understand the risk associated with it, such as the potential sale of your assets (including your home or car), the negative effect on your credit rating and implications for certain forms of employment and public office.
Our team will guide you through these issues with reliable advice.
Who is eligible for Sequestration?
Only residents in Scotland, although this can have been for as little as a single day. In this situation, you may be asked to provide evidence that you intend to stay in the country before the process can proceed.
Furthermore, only those with debts exceeding £3000 can use Sequestration, and you must not have been sequestrated within the previous 5 years. In addition to the total debt amount, you must also demonstrate that you are insolvent. A Certificate of Sequestration must be obtained, after which point you will have 30 days in which to begin the procedure.
How do I begin my Sequestration process?
Sequestration is a legally controlled process and requires expert guidance. To explore this debt solution, contact our dedicated team of advisors today.