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Sequestration - Scottish Bankruptcy

Sequestration (Bankruptcy in Scotland) is a formal insolvency process, whereby a Trustee takes control of your estate and will deal with the creditors on your behalf. It is often an alternative to a Trust Deed in Scotland as in both cases you make affordable monthly payments for a period of 4 years.

You might choose sequestration instead of a trust deed because you don't have enough disposable income for a trust deed.

With sequestration, the trustee has a responsibility to investigate whether assets, including any property, should be sold to raise funds for creditors. However, in practice Carrington Dean would be very unlikely to recommend sequestration if your property was at risk, and would always inform you in advance if this was a possibility.

Depending on your circumstances you may be required to make a contribution for a period of four years. Any assets of value which may include the equity in your home have to be realised. Provided you co-operate fully, the Accountant in Bankruptcy may grant their discharge at the end of one year. Therefore, you have a duty to continue to co-operate with your Trustee and to pay a contribution for the remainder of the sequestration period.

An application for sequestration which costs £200 can be submitted to the Accountant in Bankruptcy:

  • With the agreement of a creditor or creditors who are owed £1,500 or more, or
  • If this is not possible you can obtain a Certificate of Insolvency from an Insolvency Practitioner or approved Money Advisor. The certificate is valid for thirty days from the date it is granted.


In this guide

How does Sequestration work?

Step One

Consult an Insolvency Practitioner or approved Money Adviser who will clearly explain the sequestration process. They should advise you whether sequestration is an appropriate solution for you. For an indication of minimum monthly payments required for different solutions try our Debt Calculator. A member of our team will contact you shortly after submission to go through an in depth income and expenditure to provide you with all the options, but there is no obligation to make use of this service. To submit a sequestration application you must:

  • have lived in Scotland for more than six months
  • have debts of more than £1,500
  • not have been sequestrated in the last five years

Step Two

Your application will be submitted to the Accountant in Bankruptcy by the Insolvency Practitioner or Money Advisor. The Accountant in Bankruptcy will award sequestration, set the level of your contribution, which may be nil and appoint a Trustee. The Insolvency Practitioner who submits your application is generally appointed as your Trustee. Your application must contain either evidence of your creditor’s agreement or a Certificate of Sequestration and the cost of the application which is £200.00.

Step Three

Once sequestration has been awarded, your Trustee will contact you to discuss your affairs and to discuss the way in which your assets will be realised, if this is appropriate.

Your Trustee will contact your creditors to advise them that sequestration has been awarded and contact them on your behalf in the future.

Step Four

Provided you co-operate fully, the Accountant in Bankruptcy may grant your dischargeat the end of one year. However, although you may have been discharged the sequestration process does not come to an end. You must continue to co-operate with your Trustee whilst he is in office, normally, for a further three years. If your Trustee has assets to realise he will remain your Trustee until he has done so. 

If you have paid a contribution you will continue to pay this as set out in your contribution order.



  • Once you have been sequestrated, creditors are unable to pursue you or take any legal action against you to recover what they are owed.
  • The Insolvency Practitioner will contact your creditors, removing a source of stress.
  • Provided you co-operate fully, the Accountant in Bankruptcy may grant your dischargeat the end of one year.
  •  If you are receiving welfare benefits, these will not be classed as income for the purpose of calculating your monthly contribution.


  • Your credit rating may be affected and may affect your ability to obtain credit in the future.
  • If you are a homeowner and have equity in your property, or you have any other assets of significant value, your Trustee will be required to realise them. However, it may be possible to do so without the need to sell your home. If this is an issue the Trustee may suggest a Scottish Trust Deed instead, if this is affordable.
  • Your Sequestration will be displayed on an online Register of Insolvencies which includes details of all “live” cases plus those that were discharged in the past two years.

Why Choose Carrington Dean to help with Sequestration?

We are Scotland’s largest independently-owned debt solutions business with a team of friendly professionals, who are used to dealing sensitively with people who need help to tackle unmanageable debt.

We have a strong track record of helping people find the right debt solution for their circumstances. We always put your needs at the heart of the decision-making process. We are experienced in guiding people expertly through the sequestration process.

Peter C Dean is a recognised authority on insolvency. Our staff are trained in all aspects of personal debt solutions and have many years of experience.

Before entering into any debt solution, it is always best to seek the advice of a licensed Insolvency Practitioner or approved Money Advisor. We will explain all of your available options and only recommend a solution which suits your needs. The final decision is always your decision.

If you would like free, confidential and impartial advice about sequestration we would be pleased to meet with you or talk to you on the telephone. We are based in the heart of Glasgow and would be happy to make an appointment at a time which suits you.


Frequently Asked Questions

Provided you co-operate fully, the Accountant in Bankruptcy may grant your discharge at the end of one year. However, you will be required to make monthly contributions payments for a further period of three years.

You are unable to include your Student Loan if it is covered by the Education (Scotland) Act 1980 c.44.  You will remain liable to repay this debt.

If you are given money as a gift, you must inform your Trustee.  Depending on the amount your Trustee may require you to make this available for your creditors.  You must also inform your Trustee of any changes to your income. 

There are some banks that will provide a basic bank account service and your Trustee can provide details. However certain banks will not allow individuals to maintain an existing account after sequestration, even if you do not owe them money.  In some cases, if you have a joint account in which one party has been declared bankrupt, the bank may insist on that account being closed, and both parties opening a new account. 

If you are unhappy with the way your sequestration is handled you should speak to your Trustee. Insolvency Practitioners are members of an approved governing body.  Your Trustee will give you details of their governing body and you can contact them if the matter cannot be resolved. You can also contact the Accountant in Bankruptcy, whose contact details and those of your Trustee’s governing body can be found in the useful links section of this website.

Other Solutions

Carrington Dean

Fyfe Chambers,
105 West George Street,
Glasgow, G2 1PB 

0141 221 2323

Opening Hours

Mon: 8:30am - 8:00pm
Tues: 8:30am - 8:00pm
Wed: 8:30am - 8:00pm
Thu: 9:00am - 8:00pm
Fri: 9:00am - 1:00pm
Sat: Closed
Sun: Closed

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Authorised and regulated by the Financial Conduct Authority. FCA No: 674395

Registered in Scotland, Company Registration No SC 225672. Registered Address: Fyfe Chambers, 105 West George Street, Glasgow, G2 1PB