Bankruptcy in Scotland is called Sequestration. Sequestration is a legal way of dealing with debts that you cannot afford to pay. It will clear all of your unsecured debts and make sure that your assets are shared out fairly amongst your creditors.
Anyone can be sequestrated if you owe over £1500 and are struggling to make repayments when they fall due.
Creditors are legally no longer allowed to harass you for payment and no further action can be taken
The debt will be wiped off completely
Pensions and benefits will not be affected
Could be Discharged from sequestration within 12 months
Disadvantages of IVA:
Any valuable asset that you own will have to be sold (includes endowment policy and your home)
Certain jobs can be affected by sequestration
Your sequestration will be advertised in the Edinburgh Gazette
Sequestration will be on your credit files for 6 years
Restrictions of sequestration
You must not obtain credit over £250 without informing the lender that you are bankrupt
You are not allowed to be a director of a limited company or be involved of the day to day management of a limited company without the courts permission
You cannot act as a member of parliament or serve certain public bodies (local councils, schools boards ect)
Clear Insolvency is trading name of Hamilton and Clarke Ltd.
Registered in the UK. Company no. 6465374. Consumer Credit License (UK) 612841
Clear Insolvency, 27 Old Gloucester Street, London, WC1N 3AX
