Sequestration (Scotland)
Sequestration is the Scottish equivalent of bankruptcy in the rest of the UK. It is a formal insolvency procedure that writes off most unsecured debt. There are two routes: standard sequestration and the Minimal Asset Process (MAP), which is the Scottish equivalent of a Debt Relief Order (DRO).
A Scottish resident with no realistic way to repay £40,000 of unsecured debt applies for standard sequestration. After 12 months they are discharged; most of the debt is written off. The sequestration shows on their credit file for six years.
- Sequestration is the Scottish word for personal bankruptcy. The procedure differs in detail but the principle is the same.
- MAP (Minimal Asset Process) is the lighter-touch Scottish equivalent of a DRO. It is for people with very low income and very low assets.
- Sequestration affects your credit file for six years from the date of award.
Why it matters
Sequestration is a serious step. It is the Scottish equivalent of bankruptcy in England and Wales: a formal court-administered insolvency procedure that writes off most unsecured debt in exchange for surrendering assets above defined limits and accepting restrictions for the duration of the proceeding.
There are two routes:
- Standard sequestration for people with higher debts and some assets
- Minimal Asset Process (MAP) for people on low income with very low assets and lower-level debts
Both routes are administered by the Accountant in Bankruptcy. Both leave a six-year marker on the credit file. Standard sequestration typically lasts 12 months before discharge; MAP follows a similar but lighter process.
Common confusion
The most common confusion is the word itself. People in England and Wales hear “sequestration” and assume it is something unusual. It is Scotland’s term for personal bankruptcy. The Scottish system has its own legislation and its own administering body, but the principle is the same: formal debt relief with conditions.
People sometimes assume sequestration is permanent. It is not. Discharge typically follows 12 months for standard sequestration. Most debts are written off at discharge. A small minority of debts (including court fines, child maintenance and student loans) survive sequestration.
When to use which
- MAP suits people with no realistic prospect of repaying smaller debts, very low income and very limited assets
- Standard sequestration suits people whose debts are larger or whose assets exceed MAP’s eligibility caps
- A free debt adviser in Scotland confirms which route fits, or whether DAS or a trust deed would suit better before sequestration becomes necessary
Free help in Scotland
- Citizens Advice Scotland (cas.org.uk)
- StepChange Scotland (stepchange.org)
- Accountant in Bankruptcy (aib.gov.uk)
- National Debtline Scotland (nationaldebtline.org)