What is Sequestration?
Bankruptcy - or sequestration as it's known in Scotland - is a legally declared inability to pay your creditors. In bankruptcy, a Trustee is appointed and it's his or her job to sell your assets, which might include your home, to pay your debts.
You might also have to pay a contribution from your income. You will have to complete a personal budget, with details of your regular income and your essential household expenses, including your mortgage and current household bills. If you have money left over, you'll be asked to make a contribution.
Sequestration usually lasts for one year, after which your debts are written off. However, contribution payments will normally last for three years.
Bankruptcy can be a good solution in the right circumstances. If you've been running your own business, either on your own or in partnership with someone else, and it's gone wrong, bankruptcy might be the only way to deal with the situation. Our advisers at mlm can help you decide whether it's right for you.
For more information, contact our debt help team for a free consultation on 0800 138 0707.