You may have heard about sequestration or Scottish bankruptcy. It is possible that you have gotten advice and also considered every option that you have.
After knowing the impact that sequestration will have on your life and maybe your career, you may still want to take this path. You should know all about these things before opting for sequestration.
If you are wondering What is Sequestration, this is a Scottish legal term that is used for bankruptcy.
This is one choice that can be considered when you cannot repay debts as they become due. It is a type of debt relief that you can consider. Read on to find out how you can apply for sequestration.
Prove to be insolvent
You need to prove that you are insolvent. This can be proved when:
- A creditor presents you with some Charge of Payment that you leave unpaid
- You have signed a Trust Deed, but the creditors you have do not let this become protected
- A Certificate of Sequestration has been gotten from some approved Money Adviser or also Insolvency Practitioner that observed your financial paperwork concluding that you are insolvent
- If you agree to the specific Low Income, Low Asset features that are present to apply for sequestration.
Have all the forms
You need to have all the required forms for sequestration. You can find these online on the AiB website. You will have to read some pages. All financial paperwork will need to be present before filling the forms. This information is somewhat detailed therefore begin collecting it in advance.
Evidence along with payment
Every application for sequestration has checklists. This is to make sure that everything has been thoroughly considered and also that you have included the evidence needed for the AiB to form a decision.
If you do not have this then the AiB will not be able to grant your sequestration. Remember to sign as well as date everything. If anything gets missed out, then the application can get delayed or also not processed.
After you have completed the evidence, you will have to pay the fee. It can be done before applying and incorporating the receipt with the application. Payment may also be sent with the application via cheque or also postal order. Paying the fee in installments is possible. Nevertheless, all the fee needs to be paid in full before the application is sent.
You need to then wait for a decision. This will not take much time if you complete everything correctly and give all information required.
Insolvency Practitioner appointed
It is up to you if you want an Insolvency Practitioner as a trustee taking care of administering the sequestration, by incorporating their details within your application. For those who do not select an Insolvency Practitioner, it is the AiB who will become their trustee.
After this, an interview meeting will occur with the Insolvency Practitioner so that the next steps could be started. The Insolvency Practitioner will inform your creditors inside 60 days from when you get sequestration.