Sequestrations (Scotland only)
Sequestration (Scotland) should be your final option in terms of a debt solution.
If Sequestration is your only option we offer support, which will give you access to specialist advisors for help and guidance in your time of need.
A Sequestration is a Scottish legal term for personal bankruptcy where you are formally declared Bankrupt by the Court.
If you have decided that you want to make yourself bankrupt you must meet the following conditions:
- You must owe a total debt of £1,500 or more
- You must be living in Scotland or have lived in Scotland sometime during the last year
- You must not have been made bankrupt in the last 5 years
- You must pay the application fee of £100
- You must meet one of the following conditions.
Either:
- One of your creditors is willing to agree to you making yourself bankrupt – this is called creditor concurrence. Your creditor has to sign a special form to confirm their agreement; or
- You are apparently insolvent – apparent insolvency is a legal term that shows you cannot pay your debts as they become due. A creditor must have gone to court and obtained a ruling that you owe the debt to the creditor.
The most common types of evidence used to prove apparent insolvency are:
- A Charge for Payment – this is a legal document with the words ‘Charge for Payment’ at the top. It means that you owe money to your creditor and that you should pay them within 14 days. If you do not pay within this period, the Charge for Payment expires and can then be used to prove apparent insolvency.
- A Statutory Demand – this is a legal document with the words ‘Statutory Demand’ at the top. It gives you notice that your creditor may make you bankrupt if you do not pay what you owe them. A Statutory Demand expires after 21 days. If you do not pay within this period, the Statutory Demand can be used to prove apparent insolvency.
- Sequestration involves the transfer of your assets and property into the hands of a Trustee for the benefit of the lenders.
The Trustee in Sequestration has a duty to sell the assets/property. The Trustee may also seek a voluntary contribution from your income if you are in regular employment.
Sequestration: »Advantages »Disadvantages »Fees
Advantages
- Your lenders will no longer be able to pursue you or take action against you to recover what you owe.
- You will not have to make further payments to your lenders.
- You may expect to be discharged after 3 years and will then be free of debt (unless you have accumulated any new debts since the date of your Sequestration).
Disadvantages
- If you own any valuable property, including life assurance policies, you will probably lose them.
- If you own your own home you will probably lose it.
- If you are in paid employment you may have to make a contribution.
- If you acquire any money or property after the date of your Sequestration and before the date of your discharge you will have to surrender it to your Trustee.
- While you are sequestrated it will be unlawful for you to incur credit of more than £250 unless you tell the new lender that you are an un-discharged bankrupt.
- Your Sequestration will be noted by the Credit Referencing Agencies and you may have difficulty in obtaining credit even after your discharge.
Fees
What will it cost me to declare Sequestration?
In order to sequestrate yourself there are two fees to pay:
1. The AiB fee of £100
2. Creditfix administration fee of £500
This fee enables Creditfix to process your application for sequestration, carrying out the work set out and making available dedicated staff to advise and answer your questions. This can be paid by debit card over the phone or by cheque made payable to Creditfix.
You can fill out the forms yourself without incurring this fee.
Once you are Sequestrated any further fees come from the realisations of your assets as agreed with Creditors.
We have a host of services and all it takes is a few minutes to contact us (right). We will help you on your way to finding the answer to your debt problems.
To take control of your finances call us now on 0800 0431 431
