Sequestration is the Scottish legal term for personal bankruptcy. It is one way of dealing with debts you cannot pay.

Sequestration proceedings:

• free you from overwhelming debts so you can make a fresh start, subject to some restrictions
• make sure your assets are shared out fairly among your creditors.

Sequestration begins with a petition to the Sheriffs Court and then a Trustee is appointed to your case by the Sheriffs court. The Trustee is totally responsible for the transfer/sale of your assets e.g. house, car, valuable items, savings and investments etc, for your creditors benefit.

The Trustee also has the option to request a contribution from their income during the Sequestration period.

The petition can be lodged by:

• Anyone with a debt of more than £1,500;
• A creditor owed more than £1,500
• A Trustee in the case of a failed Trust Deed.