Sequestration

Sequestration is the UK legal term for personal bankruptcy. It starts when someone in debt is declared bankrupt in court. Sequestration means you have to hand over your assets or property to a trustee, whose duty it is to sell them and use the money raised the pay the costs of managing the sequestration and pay your creditors as much as possible of what you owe them. If you have a regular income, you may also need to make some payment from your wages.

• If you have serious debt problems and there's no realistic way of managing their repayment, then bankruptcy may be the right path to take
• You can make a fresh start after three years.

• Seriously affects your credit rating.
• Bankruptcy should be regarded as the last resort, as you could lose your home if you are a home owner. This does not count if you are a rental tenant and do not own a property.
• You may have to sell your car if it is worth more than £1500.00
• You must disclose all your own and all you owe to your trustee. If you do not do so, you could face a criminal prosecution and, if found guilty, a fine or imprisonment or both.
• You cannot borrow credit over £500 without telling the organisation or person you wish to borrow from that you are bankrupt. Failure to do so is a criminal offence.
• You are also under an obligation to co-operate with your trustee for as long as he needs to manage your bankruptcy. Whilst most debtors are discharged after three years, their bankruptcy can continue beyond this if the trustee is still collecting together their assets and paying creditors.

Contact us to find out more about sequestration / bankruptcy

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