• Sequestration Advice

What is Sequestration?

Put simply, Sequestration is the Scottish term used for Bankruptcy. Sequestration is a solution for an individual who cannot afford to pay their debts. Sequestration allows the individual to make a fresh start, debt free, but it does involve the loss of assets.

Is bankruptcy right for me?

Do you live in Scotland and are you struggling to pay your debts? Do you feel that you want to make a fresh start by leaving your debts behind and concentrating on your family and career without the burden of creditor harassment? Are creditors failing to understand that you cannot pay them, and you feel that you cannot cope with the ongoing pressure? If you recognise some or all of these issues then you should seek advice on your position as sequestration may be an appropriate solution for you.

At PJG Recovery we have a team of Scottish Bankruptcy experts to advise you on the effects of Sequestration and ensure that you have fully explored all other options before surrendering to this type of action or applying for your own Sequestration. We can advise on what you need to do to avoid being made bankrupt which may involve entering into a Trust Deed or another of the many debt solutions that are available to you.

At PJG Recovery we offer impartial and confidential advice to both individuals and businesses struggling with debt and we have helped hundreds of people across Scotland and the UK deal with their overwhelming debt problems enabling them to become debt free and make a fresh start.

If you need advice on Bankruptcy in Scotland then we can help. Enquire online or call us now on (NI & ROI) 02891 814890 (UK Mainland) 02920 346530 for free, confidential and impartial Sequestration advice.

Who can apply for Sequestration?

In certain circumstances you can apply for your own sequestration. A creditor can also apply to Court for you to be Sequestrated.

What are the alternatives to Sequestration?

There are a number of alternatives to Sequestration – A trust deed or debt arrangement scheme (DAS) are the most common.

Do you need some more information?

Our team are waiting for you to call and help you recover your financial position.
Call (NI & ROI) 02891 814890 (UK Mainland) 02920 346530 or click below.

Contact Us

How do I make myself bankrupt?

There are many routes into Sequestration:

1. Certificate for Sequestration

Introduced as recently as 2010, the Certificate for Sequestration was introduced to provide access to bankruptcy for persons who may otherwise have been excluded from the process.

In simple terms, a Certificate for Sequestration provides documentary proof that you are “insolvent” and therefore qualify to become bankrupt. This documentary proof of insolvency can then be used as part of an application for bankruptcy.

The document will be provided by a suitably qualified and approved person. Such persons may include the Money Advisers who work at your CAB or Local Authority. They also include Insolvency Practitioners (the firms that also handle trust deeds).

To obtain a Certificate for Sequestration you will need to make an appointment with a suitably qualified and approved person. They are likely to require that you bring certain documentation with you to the meeting. They will work through a fact-finding process with you that will help them to determine whether you qualify and they can therefore issue you with the Certificate for Sequestration itself. As part of this process they will be able to advise you about other potential options to deal with your debts that you might also wish to consider.

Once you have been issued with a Certificate for Sequestration you have 30 days to use it in tandem with an application for your bankruptcy.

2. Low Income Low Asset (“LILA”) Sequestration

Low income means gross weekly income of no more than the standard national minimum wage for a 40 hour working week – currently £237.20 per week (September 2011). Any pensions or maintenance payments that you receive are also counted as income.

If you are in receipt of income support, income based jobseekers allowance or working tax credits you will be treated as meeting the low income test even if your actual income is more than £237.20 per week.

When calculating your income no account will be taken of other social security benefits or tax credits you receive or any income paid to another member of your family.

Low assets means that you have no single asset with more than £1,000 and your total assets are worth no more than £10,000. In addition it means that you must not be a homeowner regardless as to whether there is any equity in the property.

3. Failed Trust Deed

In some circumstances your creditors may not have agreed to your trust deed becoming protected. Such an event provides you with a route to become bankrupt; something you will be able to discuss directly with your Trustee.

It is also possible that you have entered into a protected trust deed that has been ended prior to completion due to the resignation of your Trustee (and you have not been discharged from your debts). By way of example, this might happen if you become unable to meet the terms of the trust deed agreement, or if you fail to comply with your Trustee (they may also sequestrate you in such circumstances).

If the Trustee does not discharge you from your debts when they resign, your creditors will be able to take legal action against you. If this is the case, and you wish to initiate your own sequestration, you will need to identify which of the other routes to sequestration is most appropriate for your circumstances.

More information

Is Sequestration right for me?

If you cannot meet the demands of creditors and cannot afford to pay any money to your creditors then Sequestration may be an appropriate debt solution for you.

We would recommend that you seek advice regarding the alternatives that may be available to you before you apply for Sequestration or you allow someone else to make you bankrupt.

What are the benefits of Sequestration?

The main benefit is that your debts will be written off and after a period of usually 12 months you will be discharged from your sequestration and will be free from your debts.

What are the disadvantages of Sequestration?

Assets of any value, like your house, car, savings and investments, shares etc. may be sold in order to raise the funds needed to pay your creditors.

Some occupations are affected by sequestration and could result in you losing your job.

Your credit record will suffer and a record of the Sequestration may remain on it for a period of between five and ten years.

Sequestration will be reported in the local press as well as and the Edinburgh Gazette and you will be prohibited from operating as a Company Director. There are other possible disadvantages, so check with us before applying for Sequestration.

What will happen to my home?

This will depend on a number of different circumstances but generally if there is any equity in the property then that equity will have to be realised for the benefit of your creditors. This can be achieved by a sale of the house or by a joint owner offering to buy out your share in the house from the Trustee.

Sequestration does not affect the rights of your mortgage company and/or any other secured creditors. If you are unable to pay your mortgage and/or maintain payments in respect of secured loans then your home may be repossessed.

What will happen to my car?

You will be allowed to keep a car if it is not deemed to be of excessive value and it is required for work purposes of travel to and from your place of work. If the car is deemed to be of excessive value then the car may be sold and you may be provided with funds to purchase a cheaper replacement.

Will I be allowed to keep all of my income?

If you have any money left over at the end of each month after paying for essential living costs then you may be required to make a contribution into the Sequestration each month. This will be payable usually for a period of 3 years.

How much does Sequestration cost?

There are Court fees, which you may be able to apply for legal aid for, or if you quality for the LILA scheme then the cost is £90 payable on application.

PJG Recovery do not charge for any initial consultation so call us now and talk to one of our insolvency experts and explore the options available to you.

I need to apply for Sequestration. What are the next steps?

Speak to a specialist Insolvency Practitioner before you take any steps.

Call us on (NI & ROI) 02891 814890 (UK Mainland) 02920 346530 or apply online so that we can guide you through your options and help you with your application for Sequestration.

Advice Line:
(NI & ROI) 02891 814890
(UK Mainland) 02920 346530

Why Choose us?

  • Accredited Advisors
  • Free advice
  • Nationwide Coverage
  • Professionals that are here to help
  • With you every step of the way
Regain control of your finances

Would you like advice?

You can call us on (NI & ROI) 02891 814890 (UK Mainland) 02920 346530. Alternatively why not use this form and we will be in touch as soon as possible.

What is your Name?

What is your Email Address?

Phone Number

How did you find us?

Message Subject?

Your Message

Alternative Debt Solutions


An IVA allows you to renegotiate the terms of your arrangements with your creditors. If you have unsecured debts with a number of creditors that you are unable to pay this is an alternative to formal bankruptcy. An IVA (Individual Voluntary Arrangement) allows you to manage your debts with a solution that will give your creditors money over a period of time, which is normally 60 months.

Learn more about IVA's »

Debt Management Plans

A debt management plan (DMP) represents a viable alternative to an Individual Voluntary Arrangement for those people struggling to cope with rising levels of debt. A DMP allows individuals to restructure debt repayments into a informal payment plan.

Learn more about Debt Management Plans »


Declaring bankruptcy may be a last resort, and you do need to make sure that you have fully considered the process from all angles – the advantages, the disadvantages and the implications. Our experienced personal insolvency team at PJG Recovery can talk to you about all of the solutions available to you, including Debt Relief Orders, Individual Voluntary Arrangements and informal Debt Management.

Learn more about Bankruptcy »

Trust Deeds

If you live in Scotland and are struggling to repay your debts you may want to consider entering into a Trust Deed with your creditors. A Trust Deed is an alternative to bankruptcy and is a formal agreement between you and your creditors, where you agree to pay an affordable payment each month for a fixed period - usually 3 years - in exchange for your creditors agreeing to write off the balance outstanding at the end of the 3 years.

Learn more about Trust Deeds »

Our Fees

Our advice is always free and we only charge when we start acting on your behalf. Our fees are proportionate to the activity we perform. Fees for IVA's, Bankruptcy and other services do differ, so please review our fee structure so you are aware of how debt assistance works.

Learn more about our fees »

Learn about PJG Recovery

We have been operating since 2002 and we are a team of professional insolvency practitioners who are passionate about helping you manage issues with your debts. Being in debt is a scary and worrying time for many people. More and more people are getting into debt through no fault of their own and this is where the team at PJG Recovery can really offer you advice and help to become debt free in the best way possible. We are here to help you "recover" from debt and are always happy to talk to you for free on how we can help.

Learn more about us and how we can help »

Would you like some help?

Our team are waiting for you to call and help you recover your financial position

Contact Us