Sequestration
Sequestration
Sequestration is another legal term used for personal bankruptcy in Scotland. In the same way that a Trust Deed in Scotland is the same as an IVA in England and Wales. There are advantages of sequestration; however, it should only be used as a last resort when you have reached rock bottom and are struggling to pay off your debts. Advantages of sequestration include:
- Your debts could be cleared in as little as one year
- You will be relieved of the pressure being put on you by your creditors
- You are allowed to keep certain assets such as a reasonable living allowance
However, the disadvantages are greater and include:
- Your credit rating will be affected making it harder to obtain credit in the future
- You cannot be a company director or hold certain elected positions when in the process of sequestration
- If you are found to be at fault you could incur a bankruptcy restriction order for up to 15 years
- Bankruptcy comes with a stigma that can last for years
For more information about sequestration and debt advice in general, fill out the enquiry form below and one of our debt experts will be in touch.