An application must be made and submitted to the Accountant in Bankruptcy. The Accountant in Bankruptcy is a Public Office and supervises the administration of all Bankruptcies and Trust Deeds in Scotland.
What is Sequestration?
This is the Scottish term used for Bankruptcy, and, although very similar to a Trust Deed, there are some differences.
Sequestration is a legal declaration that someone can’t repay their debts and is a way to obtain debt relief; so, if you’re struggling to make your financial commitments, this could be a good solution for you. However, you will lose control of any assets you have; meaning that if you own your home, it’ll be passed to your Trustee, who’ll seek to sell it and use any equity in it to provide some return to your creditors.
What does it involve?
It’s a form of insolvency; a way to help you become free of any debts that you can no longer afford to pay. Once sequestrated, your assets are realised (or liquidated) by a Trustee who deals with creditors on your behalf.