Sequestration (Scotland): eligibility, process and alternatives
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In short. Sequestration is Scotland's form of bankruptcy. MAP suits low-income households with few assets (fee £90, debts from £1,500). Full administration requires debts of £5,000+ (fee £150). Accountant in Bankruptcy manages the process; discharge is typically after 12 months.
Scotland has separate insolvency law from England and Wales. Sequestration and protected trust deeds are recorded on Accountant in Bankruptcy registers. Free regulated advice is essential before applying.
Quick answer: Sequestration Scotland →
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MAP vs full sequestration
- MAP — £90 fee, low income and assets, debts from £1,500, discharge often after six months
- Full administration — £150 fee, debts £5,000+, trustee takes control of assets
- Income payment agreements may run for up to 48 months on full sequestration
Protected trust deeds
A protected trust deed is a voluntary alternative where you pay an insolvency practitioner who distributes to creditors. If enough creditors agree, it binds all creditors. Failure to pay can lead to sequestration.
Key differences from England and Wales
- England and Wales bankruptcy is administered by the Insolvency Service — fee £680
- Scottish records are on Accountant in Bankruptcy registers, not the Individual Insolvency Register
- Northern Ireland uses a separate court-based bankruptcy process
FAQ
- Can creditors force sequestration?
- Yes, if you owe at least £5,000 and have not paid or disputed the debt. Get advice immediately if you receive court papers.
- How long does sequestration stay on my credit file?
- Typically six years from the start date, similar to bankruptcy in the rest of the UK.