What is the difference between administration and sequestration

Your Trustee will remain in contact, and you are obliged to cooperate fully. Alternatively, your Trustee may ask you to sell it and buy a cheaper one so that you can put the difference to paying off your debts. If a vehicle is needed to get to work, however, selling it may not be the best option and you may be allowed to keep it.

Sequestration is a form of insolvency available to Scottish residents, whereby assets are transferred to the control of an appointed Trustee in order to pay off unsecured debts. It is very similar in nature to bankruptcy in the rest of the UK, and is seen as a measure of last resort to pay creditors and permanently write off debts. Unsecured debt including credit cards, loans and overdrafts are included in sequestration, as well as arrears on household debts such as utility bills and council tax.

Any debt secured on an asset is not included. Nor are student loans, Child Maintenance payments, fines or overpayment of benefits. Whether you are a sole trader or a limited company director, we can help you work through your current financial problems including money owed to HMRC.

A Debt Arrangement Scheme DAS lets you pay off your debt through a series of manageable instalments over a reasonable length of time. A Trust Deed involves making a monthly contribution to your debts for up to four years.

After this time any remaining debt will be wiped out. Our personalised debt report will help you better understand your financial position and see where your money is going. Chris had his own business. Everything went fine for a while, but the recession hit hard. This site uses cookies to monitor site performance and provide a more responsive and personalised experience. You must agree to our use of certain cookies.

Skip to Content. Skip to Main Menu. Scotland Debt Solutions. Call Confidential Advice - Monday to Sunday, 8am to 8pm. Open Menu. What is Sequestration Scottish Bankruptcy? Sequestration is a debt solution available in Scotland that can help you write off your unsecured debts. We offer a. Home Sequestration. Reviewed 23rd August What is Sequestration?

Contact David. Sequestration laws in Scotland Until , it was often the case that a person in Scotland with high levels of unsecured debts, whether through credit cards, personal loans or store cards, would be unable to enter sequestration of their own accord. Contact us.

Understanding the sequestration process A key element of the sequestration process will be the establishment of a relationship and an understanding between yourself and your insolvency practitioner IP.

What happens after a Trustee has been appointed? Find your Local Office. Being discharged from sequestration and your ongoing responsibilities Depending on the level of your debt and the assets which you own, you may be discharged from your debt after 6 months, subject to your compliance and cooperation. Will I lose my home if I enter sequestration? Will I have to sell my car? Get your Free Debt Report. What if I have a low income and few assets?

Inverness Aberdeen Dundee Glasgow Edinburgh. Advantages of sequestration: A Fresh Start Perhaps the most significant benefit to be gained from sequestration is that it enables individuals to draw a line under their unsecured debt problems and start moving forward. In order for you to make an informed decision, its important that you receive balanced debt advice that gives you all the key facts and how they may directly impact you.

There are pros and cons for all available solutions and while most formal debt solutions share common advantages and disadvantages, you should always seek advice from a suitably qualified debt advisor.

Call us on You might be able to pay this in instalments. For further information on all formal debt solutions fees in Scotland, you can call us on You are discharged from Sequestration typically 12 months after you formally entered the process. For Minimal Asset Process , you are discharged after a period of 6 months. However, this may not be the end of the process because the terms of your Sequestration may include that you have to make a contribution to your estate for a period of 48 months.

Therefore, while Sequestration gives you a strong chance to write off unaffordable debt and get your life back on track, you should seek expert Debt Advice as Trust Deeds and the Debt Arrangement Scheme might be a better solution for you depending on your circumstances.

Usually, credit reference agencies will hold information about Sequestration for 6 years from when it was first granted. Your details will be also added to the Register of Insolvencies for 5 years.

If your credit file is important to you — You may consider looking into alternative Scottish debt solutions such as Trust Deeds and the Debt Arrangement Scheme.

It is possible that being sequestrated could affect your existing employment and prospects for future employment. If you are working in the financial services industry, police, armed forces, prison service, licensed HGV driver, Chartered Accountant or are a member of any recognised professional body then you should take further advice, this will be discussed by your adviser prior to you making an application for bankruptcy.

Low and Grow DAS is a formal debt solution introduced in January that may help Scottish residents who have experienced a loss of income due to the Coronavirus pandemic. The solution may appeal to those who are in a position to repay their debt over a longer period of time but require a short term solution in the intermediate period before their regular income returns to normal may be eligible to apply for a Low and Grow DAS.

The benefits and risks are the same as any other debt payment programme DPP undertaken as part of the Debt Arrangement Scheme. When a person repays their debts through DAS, interest and contractual charges are frozen. DAS lifts wage arrestments; stops court action including Sequestration bankruptcy in Scotland and requires one monthly payment that is distributed to all creditors on their behalf.

A Scottish Trust Deed is a statutory debt solution in Scotland that reduces unsecured debt repayments down to one single monthly payment and writes off a significant part of your unaffordable debts. The length of a Scottish Trust Deed can vary based on the debt level involved, the affordability of the individual, and other factors including assets, however, the typical length of Trust Deeds in Scotland is 48 months.

A Protected Trust Deed acts as a formal, legally binding agreement between an individual and their creditors. Trust Deeds are a form of personal insolvency in Scotland. They were introduced as a formal debt management solution for Scottish residents and have been revised a number of times since they were first introduced in Scotland. One way to counter this is to keep your cellphone contracts and to pay them on time every month.

In this way, once you have been released from debt review, you will have at least one credit reference and a good credit score. Voluntary sequestration is a legal process whereby you apply to court to be declared insolvent. Once the process commences, you may not make any payments to creditors. The court will appoint a curator over your estate who will manage the sale of assets and distribution of benefits of at least 20 c out of the rand to the creditors. The remainder can be paid in cash or at an affordable low instalment over 18 to 24 months.

While under sequestration, you cannot act as a director of a company and may not hold certain positions. You need the written permission of the curator to enter into credit agreements, though it is not recommended. Depending on whether you sequestrate with or without property, you will not necessarily lose your movable assets.

Once sequestrated, you are completely debt-free and can rebuild your financial estate. Help for you to become debt-free, risk-free. We do NOT offer loans. We are currently experiencing technical difficulties with our telephone lines. While our technicians are working on the issue, you may contact us on We Apologise For The Inconvenience.