Sequestration in Scotland explained
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Quick answer: Sequestration is Scotland's form of bankruptcy for people who cannot pay their debts. You can apply through the Minimal Asset Process (MAP) if you have low income and few assets, or through full administration sequestration if debts exceed £5,000. An Accountant in Bankruptcy trustee manages your estate; discharge is typically after 12 months.
Scotland has its own insolvency law — sequestration and protected trust deeds replace the England and Wales bankruptcy route. Rules, fees, registers and eligibility differ. Free regulated advice from Citizens Advice Scotland or a money adviser is essential before applying.
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Read the full debt help guide →Quick answer: Sequestration Scotland →Primary source: www.aib.gov.uk
Minimal Asset Process (MAP)
MAP is a streamlined sequestration for people on low income with few assets — no home ownership with significant equity, limited vehicle value, and no single asset worth more than £1,000 (with exceptions).
You need debts of at least £1,500 and must not have been sequestrated in the past five years. The £90 application fee is paid to Accountant in Bankruptcy.
MAP usually leads to discharge after six months with no income payment agreement — but you cannot be a company director during sequestration.
Full administration sequestration
If MAP does not apply, full administration sequestration requires debts of at least £5,000. Application fee is £150. A trustee (often Accountant in Bankruptcy) takes control of assets to pay creditors.
You may face an income payment agreement for up to 48 months if you have surplus income after essential living costs. Your home with equity may need to be sold or equity released.
Discharge is typically after 12 months, but the trustee can continue realising assets and collecting income payments after discharge.
Protected trust deeds — the alternative
A protected trust deed (PTD) is a voluntary agreement where you pay an insolvency practitioner who distributes to creditors. If enough creditors agree, it becomes protected and binds all creditors.
PTDs suit people with regular income who can afford monthly contributions but want to avoid full sequestration. Failure to maintain payments can lead to sequestration anyway.
Both sequestration and PTDs affect credit files for six years and restrict some jobs and credit.
Common questions
Is sequestration the same as bankruptcy in England?
It is the Scottish equivalent but with different fees, registers, MAP route and trustee rules. England and Wales bankruptcy is administered by the Insolvency Service, not Accountant in Bankruptcy.
Can creditors make me sequestrated?
Yes. Creditors can petition the court if you owe at least £5,000 and have not paid or disputed the debt. Get advice immediately if you receive a statutory demand or court papers.
What happens to my bank account?
Your bank may freeze or close accounts when sequestration starts. Basic bank accounts with some providers remain available — ask your money adviser before applying.