Plan for Progress  

A Sequestration is a legal term in Scotland for personal bankruptcy. It works similar to bankruptcy in many ways. The process is done through a bankrutpcy court. Sequestration takes place when a large sum of assets or property is put into the hands of the Trustee. The money from these assets will go to paying back the lenders (or paying back as much as they can get for the assets).

Insolvency and bankruptcy are two different things altogether. Insolvency just means that you are now unable to make you bill payments so you have to look at other options like IVAs, debt consolidation, or debt management.

There are a lot of resources on the internet about voluntary bankruptcy in Scotland as well as IVAs and their Scottish counterpart: Protected Trust Deeds.

In Scotland you can do something known as a self sequestration as well. You have to owe more than £1500 and a lender must have served you as well. There process is pretty complex but you still have that as an option if you currently have debts and can’t  pay them back.