Sequestration is the Scottish equivalent of bankruptcy and can allow for all your debts to be written off.
It’s an informal insolvency process that is an option if you’re unable to repay your debts. To be eligible for sequestration you must owe £3,000 or more. A licensed Insolvency Practitioner takes control of your assets and liaise with the people you owe money to on your behalf.
A sequestration application comes with a cost of £200 and is submitted the Accountant in Bankruptcy (AIB) with the agreement of creditors owed more than £1,500 or with a certificate of insolvency from an Insolvency Practitioner.