New Post has been published on Solutions Scotland
New Post has been published on http://www.solutionsscotland.co.uk/sequestration-scotland/
Sequestration is the Scottish legal term for bankruptcy
In 2008 the laws relating to Scottish Bankruptcy were changed. Previously lots people used to wait until a creditor decided to make them bankrupt, but many creditors decided some sums were simply not worth recovering, which left hundreds of people just watching their debts go up and up through interest rates and charges. The new legislation introduced in 2008 made it easier for debtors to take control of their finances and sequestrate themselves.
To be eligible for Sequestration you have to meet certain criteria. You must:
Have lived in Scotland for 1 year, although extra evidence may be requested to prove that you intend to stay in the country
You must Owe more than £1,500
Not have been sequestrated in the last five years and earlier
Be classed as apparently insolvent, which could mean a creditor has issued a statory demand or a charge for payment, or:
You were not able to get your trust deed protected (by signing the paperwork for this you have declared yourself insolvent), or;
Obtained a Certificate of Sequestration
You can get a Certificate Of Sequestration from an Insolvency Practitioner once they have looked over your finances and believe you can no longer pay your creditors and requests Sequestration. A Money Advisor is also able to issue you with a Certificate Of Sequestration but only if they are on the government list of approved advisor’s.
Once you have received your certificate, then within 30 days you merely apply for your sequestration to the accountant in bankruptcy(AiB). There is a £200 fee for applying for Sequestration. If your application is submitted with the correct information and your fee, the AiB will try to process the application in 5 working days, so you could be declared formally bankrupt within 5 working days of them receiving your application and a Trustee will be appointed over your affairs.
Benefits of sequestration
One benefit of sequestration is you can be debt free in a short amount of time, Another benefit of sequestration is all your unsecured debts are usually written off, though you may be required to make a contribution also another benefit of sequestration, you’ll receive no further contact from your creditors.
At this point the Trustee who may be an Insolvency Practioner or the Accountants In Bankruptcy, assesses your assets to see if any can be sold to release some cash to your creditors, and also assesses your income and expenditure to see if you can afford to make any payment to your creditors. Tne Account In Bankruptcy is what is known as the default Trustee, which means if you don’t want to go and find an IP yourself to act as Trustee they are appointed to deal with your affairs.
Within 60 days of you being sequestrated, all of your creditors will be told by your IP about your sequestration, however from the date of your order you will never have to deal with them again. They may ring or write to you, but all you do is pass them over to your IP. You don’t have to tell them anything and don’t have to get drawn in to any conversations with them. It can take time for creditors to react to notices from your IP, especially if your debt is being pursued by agents or other organisations but eventually your IP will take care of all the creditors and ensure that you are in a position so you can start again.
sequestration has serious implications for your future and should never be undertaken lightly.
Sequestration is only available if you live in Scotland. If you live in England, Wales or Northern Ireland, bankruptcy is a similar solution.
