Sequestration is the Scottish term for bankruptcy. This is a form of insolvency where you will only pay back what you can afford over a set period of time.
Sequestration is an option to consider when you are unable to repay your debts over a realistic period. It may be an option where you simply cannot reach agreement with your creditors and your financial situation has become very difficult to manage.
Once you are discharged, your remaining unsecured debt will be written off. Control of your assets are passed to a Trustee who will deal with creditors on your behalf as You are likely to be under a lot of pressure, with a number of your creditors competing to collect their debt from you.
Applications for Sequestration are processed and awarded by the Accountant in Bankruptcy who is an officer of the Scottish Government. An application fee of £200 is payable to the Accountant in Bankruptcy to cover the cost of processing your application.