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Sequestration Scotland

Like bankruptcy, sequestration is a drastic step and you should only take this route after taking detailed advice, and considered all other options to manage your debts.

What is sequestration?

Sequestration was introduced in 2010 and is only available in Scotland. Previous to sequestration, you had to wait for creditors to make you bankrupt. Many creditors decided that the debt amounts were simply not worth recovering, meaning many people could only watch as accruing interest made their debt bigger and bigger.

The Certificate of Sequestration was introduced, meaning that debtors could take control of their finances and debts.

Types of sequestration

There are two types but you will need advice as to which one is right for you. The process does not need to be complicated but it does have far-reaching implications for you. Each sequestration has slightly different criteria;

Ordinary Sequestration

Low Income, Low Asset (LILA) Sequestration

You must   have lived in Scotland for 12 months

You must   have lived in Scotland for 12 months

Owe more   than £1,500

Owe more   than £1,500

You must not   have been sequestered in the previous 5 years

Earn the   National Minimum Wage or less for a 40 hour working week

Be classed   as insolvent

Own no more   than £10,000 in assets, with no individual asset worth more than £1,000


Own no land   or property


Be classed   as insolvent


What does sequestration mean to you?

Sequestration, like filing for bankruptcy, is a drastic step with far-reaching implications. If you do apply for sequestration then the following will apply:

  • You MUST sell all belongings of any value
  • You will NOT be able to borrow more than £250 without telling the lender of your sequestration
  • Your sequestration will be public knowledge
  • It may also affect your employment
  • It will last for a minimum of 12 months

BUT, during sequestration your pension and benefits will remain unaffected and when the sequestration ends you will be debt free.

Debt Advice Scotland can offer your detailed advice and information so that you make an informed choice on ALL the options open to you, including sequestration.

Where We Can Help

Debt Advice Scotland provides sequestration services for customers throughout Scotland, including:

GlasgowEdinburghAberdeenDundeeInvernessPerth, Stirling, Paisley, Cumbernauld, Livingston, East Kilbride, Motherwell