If you are unable to continue repaying your unsecured debts Sequestration, or Scottish Bankruptcy, could be the answer. It’s one of the three main potential solutions available to residents in Scotland. If you don’t qualify for a Trust Deed, or if you can’t afford to restructure your repayments via a DAS, then Sequestration could still offer you a solution.

How it works

Sequestration, also known as bankruptcy, is a legal process where you can write off the unsecured debt you can’t afford to pay. You can apply to the Accountant in Bankruptcy to become bankrupt. Or a creditor can apply to the relevant Sheriff Court to make you bankrupt. If your Sequestration is granted, all repayments, interest and charges on your unsecured debt will immediately stop. However you will be required to transfer all of your valuable assets, including your home, to an Insolvency Practitioner who will act as Trustee. For a period of four years from your Sequestration, this could include any assets you acquire after your Sequestration but before your discharge. And, if you are still earning, your Trustee may also deduct affordable monthly payments from you. At the end of your Sequestration, which may be after 6 month or 12 months depending on your entry route, any unsecured debt remaining will simply be written off.

If our Debt Test indicates you are likely to qualify, you will be assigned to one of our expert Debt Advisers who’ll review your assets and circumstances in more detail. Your Adviser will work out which assets could be used to help repay the debts, whether you’re able to afford any monthly repayments or not, and will identify if Sequestration is indeed the best option for you. If it is, and you choose to proceed, your Adviser will assign your case to one of or licensed qualified Insolvency Practitioners who will manage your application and administer your Sequestration.


  • Writes-off unaffordable unsecured debt
  • Makes room for your other living costs.
  • Legal protection from your lenders as soon as your Sequestration starts.
  • Free of unsecured debt after 1 year


  • Your assets can be sold off so your lenders can be paid some of the money they’re owed.
  • Those with a regular income may have to make a regular contribution into the Sequestration.
  • If you receive any windfalls, inheritance, bonuses or similar, you’ll be required to pay these to the Trustee.
  • You also won’t be able to hold certain jobs if you’ve been Sequestrated.
  • Your Sequestration will be permanently recorded on the Insolvency Register, which is available to the public, for two years after your Trustee’s discharge.
  • Sequestration can affect your employment opportunities, in that it prevents you holding certain positions, such as a company director, council member and MP.
  • Sequestration often rules out the option to continue trading if you’re self-employed.
  • Before you’re discharged from sequestration, it’ll be unlawful for you to borrow more than £500 unless you inform the lender that you’re an un-discharged bankrupt.
  • Your Sequestration will stay on your credit report for six years, meaning you may find it difficult to obtain credit during this time.

Is it for you?

If you’re resident in Scotland, have unsecured debts of £1500 or more, and are struggling to repay them, becoming debt free within 12 months may seem very attractive. However it’s important you receive expert advice and a detailed review of your options before applying for your Sequestration. Take our simple Debt Test to establish if you’re likely to qualify and connect with one of our professional Debt Advisers committed to identifying the right solution to helping you out of debt. Your enquiry will be handled professionally and in confidence.