At ALBA Money we will always analyse your financial situation before recommending sequestration. Sometimes the most appropriate solution is a Protected Trust Deed which is less damaging to your credit rating than sequestration.

If you would like help to understand your finances and become debt-free then call 0800 612 6232 and speak to an experienced debt adviser who will listen to your situation and offer the most appropriate advice.

The key advantages of sequestration are:

• Your creditors will no longer be able to pursue you or take action against you to recover what you owe
• You will not have to make further payments to your creditors but will have to pay any surplus income to your Trustee
• Income from benefits or pensions will be yours to keep
• You can expect to be discharged after three years

There are, however, some disadvantages:

• If you own any valuable assets, including endowment policies, these will usually have to be sold
• If you are in paid employment you may have to make a regular contribution for more than one year
• If you acquire any money (wages and pension proceeds excluded) or property after the date of your sequestration and before the date of your discharge, you may have to surrender these to your Trustee
• It is unlawful to incur credit of more than £500 whilst sequestrated unless you tell the lender that you are an undischarged bankrupt
• You are not allowed to start up or be involved in the day-to-day management of a limited company
• You are not allowed to act as a member of parliament, and there are certain other restrictions, such as acting as a member of any local council or school boards, etc
• Your sequestration will be advertised in the Edinburgh Gazette and may be noted by credit referencing agencies. You may have difficulties in obtaining credit after your discharge.