Do you qualify for bankruptcy? Find out with our free, simple test

Start my free debt test

Bankruptcy - Sequestration

A look at sequestration - bankruptcy in Scotland.

The Scottish bankruptcy process is not far removed from the process elsewhere in the UK.

Part of the problem when deciding how to act regarding financial difficulties is the vast array of financial solutions available, and the differing approaches and terminology across countries in the UK. With so many debt solutions pushed on people, it’s hard to make sense of everything in a credit driven society. This is unfortunate as it can mean that confusion prevents debt problems being dealt with.
Here at the Bankruptcy Service, we hope to cut through the jargon and provide you with all the relevant information you need to make a clear, concise decision. So one area that needs covering is the following oft-asked question – what is the difference between bankruptcy and sequestration?
Well in Scotland, sequestration is simply the name for bankruptcy, so there is no difference. In the rest of the UK, it is called bankruptcy only. Thus, as a Scottish resident, information you read on sequestration applies to bankruptcy, and vice versa.

What is sequestration?

If you reside in Scotland and think that sequestration is the right option for you, then call one of our expert advisors or take our simple debt test on the website. We will provide all the impartial advice you need to decide what is the best option for you. All options will be considered.
Sequestration is simply the Scottish term for bankruptcy, so has an identical meaning to the general term used elsewhere in the UK. The sequestration process falls under the responsibility of the Accountant in Bankruptcy, who oversees proceedings on behalf of the government.
The sequestration process can be started by a personal application for bankruptcy or based on a petition of a relevant creditor.
As always, we suggest that an individual seeks professional advice if you are considering bankruptcy, as it is a big step to take.

The sequestration process

A sequestration application must go through the Accountant in Bankruptcy and a local court, and a sheriff will make the decision as to whether sequestration is the appropriate course of action. This is the process whether the application is made by an individual or by a creditor.
If sequestration is the determined course, a trustee will be appointed to deal with the bankrupt’s estate, in order to determine the value of all assets, to calculate whether certain debts can be paid off, and to what extent this will be possible. This trustee will deal with creditors on your behalf, so the process ends dealing with those that you owe money to. He will ascertain whether you are in a position to make regular payments to creditors, usually over a period of three years. Any debts not covered in this plan/period should be written off, and an individual is usually discharged from their bankruptcy after a year, as long as they have followed instructions as advised.

Alternative options?

There are in recent times many alternatives now available to sequestration or bankruptcy, depending on your individual circumstances, so always seek advice before making a decision.
If sequestration is the determined course, a trustee will be appointed to deal with the bankrupt’s estate, or alternatively you can appoint a private licensed Insolvency Practitioner to oversee the case. You can then discuss your case in full before making a plan of action and deciding which path to take.

Free debt counselling and advice is also available from the Money Advice Service available at: doesn't charge a fee for its bankruptcy service, but receives remuneration from the partners that we work with in order to keep operating. Those partners must charge a fee to the customer to likewise cover operational costs, and this amount will vary depending on the solution offered, and the terms of the parner. For details of these terms, please refer to the website of the organisation dealing with your bankruptcy. Upon application with, we will forward your information on to one of our specialist debt partners. You will then be contacted, and you will be able to explain your case, and expert advice will be offered in order to ascertain the most appropriate debt solution.