Category: Sequestration

How to Write Off Debt

Posted on by Craig Stocks
Many Trust Deed Scotland® customers who come to us looking for debt advice; often asking for more information on whether they can write off their debts.

Can You Write Off Debt without entering into a debt solution?

In some rare cases, you may find that creditors (the people you owe money to) may be willing to write off some or all of your debt if you can prove that is unaffordable for you and if you also have a terminal illness and your life expectancy is limited for example. Alternatively, it’s a genuine possibility to write off debt after completing select debt solutions. In this article, we will explain the available debt solutions that can allow you to write off debt when you have unaffordable payments.  

Debt Solutions That Write Off Debt in Scotland

The following are debt solutions available to Scottish residents. See below for how to write off debt in the UK.

Protected Trust Deed (PTD)

A Trust Deed is a legally binding agreement where, once completed, any remaining, qualifying and unsecured debts will be written off. A Trust Deed is completed after a typical repayment period of 4 years, with affordable monthly payments being paid towards your debt during this period. Trust Deeds can only be arranged and administered by a licensed Insolvency Practitioner (IP), such as Trust Deed Scotland®, who will take on the role of ‘Trustee’.  

Sequestration / Scottish Bankruptcy

Sequestration is the Scottish legal term for bankruptcy. Sequestration can be an appropriate solution for you if you are struggling with unaffordable debts. Sequestration is also used by creditors who take legal action against individuals for repayment of debts. If creditors have already commenced legal action against you, or you would like to get ahead of your debts now, please don’t hesitate to get debt advice. If you have a low income and have little or no assets, the type of Sequestration you would qualify for is known as the Minimal Asset Process route to Sequestration…

Minimal Assets Process (MAP) Bankruptcy

Minimal Assets Process – or MAP – is a route into Sequestration, for Scottish residents with a low income and few assets. With MAPs, you can write off your unsecured debts after 6 months; provided you have no disposable income, or your income is solely derived from social security benefits.  

Debt Solutions That Write Off Debt in the UK

The following are debt solutions available to residents in England, Wales and Northern Ireland. Once chosen or completed these debt solutions, you will be able to write off remaining debt.

Bankruptcy

Write off unsecured debts if you can show it is unaffordable for you. You may have to sell assets such as a house or car.

Debt Relief Order (DRO)

UK residents must have a few assets to choose this debt solution, and usually opt for a Debt Relief Order when debt levels are relatively low.

Individual Voluntary Arrangement (IVA)

This is a formal agreement for those in England, Wales and Ireland to make affordable monthly payments to your debts. Often, lasting over 5 or 6 years.  

Asking Your Creditors to Write Off Debt

Our customers come to us with unaffordable debt; finding themselves in financial difficulties for a range of reasons. Some reasons can be; If you’re struggling to pay off debts due to challenging circumstances, creditors may agree to write off your debts if:
  • You provide proof of inability to pay
  • You have no assets to sell
  • It clearly isn’t worthwhile for them to keep chasing the debt
However, this is rare, as creditors will only do this for the most serious cases. Before writing off debts, creditors may agree to stop contact for a period of time or agree to help if you have a mental health issue. For help with debts from creditors regarding your mental health, provide proof with a Debt and Mental Health Evidence Form (DMHEF). This must be stamped by a professional such as your GP to be considered complete.  

How Writing Off Debt Affects Your Credit Rating

Entering into any formal debt solution mentioned above will harm your credit score. However, if you are continually missing payments already, your credit score is currently affected. There are many misconceptions about credit scores, so make sure you have all the facts before making a decision. Most importantly, once you have written off debt, you can work on rebuilding your credit score. A bad credit score won’t remain if you take the steps to repair it and follow our tips on improving your credit score. With your debts written off, you will no longer miss payments that are harming your credit currently.  

Tailored Debt Advice

“Can I write off my debt?” – our team of experienced debt advisers are happy to answer. After a discussion about your circumstances, Trust Deed Scotland® debt advisers can provide information of all the solutions available to you. We are one of Scotland’s largest debt solutions providers, specialising in debt solutions such as Protected Trust Deeds, which allow you to write off debt once completed. If you have debts mounting up and are unsure what to do, please reach out. We are here to help. Our team of experienced debt advisers ensure you have all the information to make the right decision for your circumstances and needs. Contact us through WhatsApp Service, or by calling 0141 221 0999. Alternatively, try the Trust Deed Wizard® tool to quickly check your eligibility online.

Demand for debt advice to increase by up to 60% in 2021

Posted on by Craig Stocks
The Money and Pensions Service expects the demand for debt advice to increase by up to 60% by the end of 2021 and this is likely to lead to an increase in the need for debt relief. In August 2020 Citizens Advice estimated that 6 million UK adults have fallen behind on at least one household bill during the pandemic, with 20% of those who have fallen behind on their bills unable to afford household essentials. An estimated 3,000,000 more people than before the pandemic will need support with problem debt by the end of 2021. As a result, proposals have been outlined by the UK government to increase the financial eligibility criteria for Debt Relief Orders (DROs) – the English, Welsh and North Irish equivalent of the Scottish Minimal Asset Process route to bankruptcy. (MAP) A DRO/MAP is a route into bankruptcy (Sequestration in Scotland) for people who have problem debt and who also have a low income, with little or no assets. The aim of the proposed changes is to help more people deal with financial difficulties and to achieve a fresh start. The UK government is publicly consulting on changing the eligibility criteria to enter into a DRO to:
  • Increase the total amount of debt allowable to £30,000 (from £20,000)
  • Increase the value of assets owned by the individual to £2,000 (from £1,000)
  • Increase the level of surplus income to £100 (from £50) per month
NOTE: For more information on how the Minimal Asset Process route to Sequestration works, please read our MAP guide. Kwasi Kwarteng, Business Secretary said: “Suffering from financial difficulties places a huge amount of stress on people’s mental health and wellbeing, which is why we are committed to giving more people who are struggling with debt a chance for a fresh start. Debt Relief Orders are a valuable tool for supporting vulnerable people to get to grips with their problem debts. Our plans to increase the eligibility criteria will mean many thousands more could benefit from this help.” Trust Deed Scotland® further advised: “Many people in the rest of the UK stand to benefit from the proposed changes, at a time when they are most needed, especially as it’s likely that the additional £20 per week payment made available via Universal Credit will be discontinued. In Scotland, thanks to changes already passed as part of the Coronavirus Bill in 2020, MAP application fees had already been reduced or waived for people with the lowest incomes and the qualifying debt ceiling limit has also increased. However, thanks to additional Statutory Moratorium support that was also passed as legislation in 2020, and more recently, we now also have the option to offer a Low and Grow payment plans in Scotland. Find out more about What is a Statutory Moratorium. The Low and Grow DAS process allow individuals to make minimum or token payments through DAS with a view to increasing them when their income returns to a normal level. We are hopeful that for people struggling with debt throughout the rest of the UK, they too can benefit from the proposed changes should Payment Breaks and Tailored Support offered by creditors not be enough to resolve their finances difficulties.” If you are experiencing financial difficulties and are also affected by a drop in your regular income, you can find out more about your options including Statutory Moratoriums, MAP and Low and Grow DAS by calling our advice team on 0141 221 0999. Alternatively, if you are experiencing financial difficulties but continue to receive a regular income, you can find out more about Trust Deeds, and the Debt Arrangement Scheme which allows you to manage your unaffordable debt by significantly reducing your monthly creditor payment obligations, freezing your interest and charges and reducing creditor contact.

Can I apply for MAP?

To apply for Minimal Asset Process Sequestration, you must meet the following conditions:
  • You must owe a total debt of at least £1,500.
  • You must not owe more than £25,000 (This may / may not revert back to £17,000 after March 31 2021).
  • You do not own a single asset worth over £1,000 (this excludes a vehicle which does not exceed £3,000 and is reasonably required).
  • The total value of assets does not exceed £2,000.
  • You must have received advice from an Approved Money Adviser.
  • You must be living in Scotland or have lived in Scotland within the last 12 months.
  • You must not have been made bankrupt in the last five years.
  • You must not have been made bankrupt through the Minimal Asset Process within the last 10 years.
  • You must pay the reduced application fee of £50 to the AiB (This may / may not continue to be reduced/waived after March 31 2021).
  • You must have a certificate for sequestration signed by an authorised person
  • You must have been in receipt of benefits only, for the last six months; or
  • A money adviser has assessed your income and expenditure using the common financial tool and you have no surplus to pay a debtor’s contribution.
  • You do not own any land or property.

About Trust Deed Scotland®

Our experienced debt advice team have helped over [volume] people in Scotland get their finances back on track. As well as advice on MAP, we offer formal Scottish debt solutions such as Protected Trust Deeds and the Debt Arrangement Scheme. With over [reviews] 5/5 reviews, we’re rated No.1 in Trustpilot’s debt relief service category. Call us on 0141 221 0999 for friendly, non-judgemental debt advice or complete our Trust Deed Wizard tool today.  

What is MAP Sequestration?

Posted on by Craig Stocks
The MAP Sequestration is more formerly known as Minimal Asset Process and it is a form of sequestration in Scotland. Sequestration is the Scottish term for bankruptcy. The MAP solution was introduced in 2015 and was previously known as the Low Income, Low Asset bankruptcy which essentially describes it’s qualification criteria. The MAP is the nearest Scottish equivalent to a Debt Relief Order. The other type of Sequestration in Scotland is known as Full Administration Sequestration. Bankruptcy has always carried a greater stigma to it, not just here in Scotland but through the world. However, there really needn’t be as many more people struggle with their finances and require its use to get control of their finances again, working towards a brighter journey.

Benefits of the Minimal Asset Process

  • Most unsecured debts are included in MAP Sequestration
  • You can apply for MAP when you have a total debt level of £25,000.
  • Although MAP Sequestration is a formal legal process, you won’t need to appear in court
  • You’ll usually be discharged from your MAP Sequestration after six months, after which most debts will be legally written off
  • Once your MAP Sequestration is approved your creditors can’t chase you for payment or add more interest and charges to your debts, and they can’t take any court action

Risks of the Minimal Asset Process

  • Your credit rating will be affected for six years from the day your MAP Sequestration begins
  • Your bank is likely to close or freeze your accounts and you may only be able to get a basic bank account
  • Sequestration can impact some jobs or may lead to termination of employment
  • Some private landlords may evict tenants or not renew a tenancy agreement if you become Sequestrated*
  • Some debts, such as student loans, court fines ad child-maintenance are not included
  • If you are self-employed, Sequestration could make it harder to trade and obtain credit for goods and services

How has Coronavirus affected Minimal Asset Process Sequestration?

Following the coronavirus (COVID-19) pandemic, new legislation was brought in to change some of the MAP Sequestration eligibility criteria. The Coronavirus (Scotland) (No. 2) Act 2020 has made some changes which, while small in number, are significant. These are: The financial threshold of maximum debts owed has been increased from £17,000 to £25,000 The application fee to apply for Minimal Asset Process has been reduced to £50 and some fees has been waived for those on certain benefits * The Coronavirus (Scotland) Act 2020 protects tenants in Scotland from any eviction action for up to 6 months.

Where to get MAP Sequestration advice

Many companies that advertise on Google and social media concentrate purely on Trust Deeds as opposed to alternative Scottish debt help solutions including MAP sequestration and the Debt Arrangement Scheme for arguably self-motivated interests. This may seem like it’s more difficult to get qualified advice and assistance in applying for MAP Sequestration. At Trust Deed Scotland® we’ve always aimed to offered Debt Help in Scotland that is transparent, balanced and we’ve always put our clients at the forefront of the decision-making process. As such, we have our client’s best interest at heart. If you want to discuss your options, you can always find non-judgemental, confidential advice from us. Contact Trust Deed Scotland® today on 0141 221 0999. You can also get free MAP sequestration advice from organisations such as Money Advice Service, an independent service set up to help people manage their money.

Minimal Asset Process alternatives

When considering which option is best to help you manage your financial difficulties, you may also qualify for a Trust Deed, or you may be outwith the MAP Sequestration qualification criteria and therefore more likely need to apply for Full Administration Sequestration. There may also the option to apply for the Debt Arrangement Scheme as your best way forward. If you have reviewed your options for clearing debt in Scotland and found that the only solution that can help you is in fact MAP Sequestration, then don’t be put off this applying for this solution as they exist to help people with the severest of debt in Scotland. In the years 2018-2019 and 2019-2020, just over 3,800 Scottish individuals were declared bankrupt each year. Of this figure, just over 2,000 were awarded Minimal Asset Process bankruptcy. You are not alone. In 2018-19 there were 7,915 registered Protected Trust Deeds and this rose to 8,743 in 2019-20. Likewise, in 2018-19 there were 2,636 Debt Payment Programme applications received under the Debt Arrangement Scheme and 3,495 DAS Applications in 2019-20. When weighing up your options, it may be possible to be coerced into considering one solution over another. That coercion may come from an unqualified debt advisor, or within your own social circles – or hearsay within forums and groups. However, although mostly well-meaning, the truth is that you should always first seek expert money advice from a qualified money advisor, and that way you will receive tailored advice that suits your own circumstances. Call 0141 221 0999 today if you want to find out more about the advantages and disadvantages of MAP bankruptcy and alternatives.

Trust Deeds vs Sequestration

Posted on by Craig Stocks
Help to understand both the similarities and differences between Trust Deeds vs Sequestration in Scotland. Trust Deeds and Sequestration are two formal debt solutions in Scotland, alongside Debt Arrangement Scheme. Sequestration is the Scottish equivalent of Bankruptcy whereas Trust Deeds are similar to an IVA. When considering Trust Deeds vs Sequestration, there are some factors to consider and there are two types of Sequestration; Full Administration Bankruptcy and Minimal Asset Process Bankruptcy.
Trust Deeds vs Sequestration – Similarities
Both are personal insolvency solutions that provide legal solutions to unaffordable debt in Scotland, that help provide you with a route to a brighter future.
  • Both allow you to repay debt on your own terms, at your own affordability.
  • Stop creditor contact and further stops them taking legal action against you.
  • Helps write off a chunk of the debt you owe.
  • Remain on your credit report for 6 years, which makes it more difficult but not impossible to take out further credit.
  • Impacts employment, depending on the type of industry that you work in, and/or job function that you perform.
Trust Deeds vs Sequestration – Trust Deeds
  • Trust Deeds – Allow you to protect the things you care about most – Your home, your car and your ability to pay typical essential bills like mortgage, rent, council tax and day-to-day outgoings that you and your family need to live on.
  • Writes off debt after a typical period of 4 years. All 48 monthly payments are based on what you can afford to repay on your own terms.
  • Have no initial fees, and your Trustees fees are paid as part of the monthly affordable payments.
  • Typically requires a minimum unsecured debt of £5,000 to qualify.
Trust Deeds vs Sequestration – Sequestration
  • Sequestration – Will typically result in the sale of valuable assets such as your home.
  • Writes off the debt you owe within one year, but repayment may continue for 48 months.
  • May be invoked by your creditors rather than you based on how much you owe, this was recently amended to a minimum of £10,000 as part of the recent Coronavirus ( Scotland) Act.

Sequestration Considerations

It’s important to note that Sequestration has different benefits, risks and fees associated with Sequestration than with other debt management solutions. Before you make a decision on whether or not to apply for Sequestration, you should seek expert debt advice as there are a number of considerations to think about. You can call Trust Deed Scotland® today on 0141 221 0999 for a quick chat about your situation, or allow us to provide you with a more personalised illustration of which options may be available for you. Our advisors are friendly and non-judgemental, and their qualified, expert advice is confidential, balanced and without obligation. Bankruptcy has both an emotional and social stigma attached to it throughout the world and this is no different here in Scotland. We can feel a mixture of guilt and embarrassment when forced to consider Sequestration. Every year, thousands of Scots are declared bankrupt and that is almost always as a result of circumstances beyond their control. During difficult periods of recession, high unemployment and austerity measures, this has amplified these figures in recent years. The social and emotional stigma may make you feel bad about your situation. However, Sequestration can sometimes be the most appropriate way to manage your debts and get yourself back in control of your finances. There is also a financial stigma caused by Sequestration e.g. your credit score will worsen and any credit cards you apply for in the future will carry a higher interest rate. If Sequestration is not right for your circumstances, or other alternatives exist, we’ll advise you on what other options are available to you. You can be assured that in any situation all pros and cons would be explained and the decision you make is entirely your own. Sequestration fees have been temporarily reduced for the most vulnerable as a result of recent changes brought on by the second Coronavirus Bill. MAP application fees are removed for those in receipt of specified benefits, and reduced to £50 from the current £90 for all others. Fees are reduced to £150 and are waived for those in receipt of specified benefits.

Trust Deeds Considerations

Again, it’s important to note that Trust Deeds have different benefits, risks and fees associated with Trust Deeds than with any other debt management solutions. Before you make a decision on whether or not to enter into a Trust Deed, you should seek expert debt advice as there are a number of considerations to think about. You can call Trust Deed Scotland® today on 0141 221 0999 for a quick chat about your situation, or allow us to provide you with a more personalised illustration of which options may be available for you. Our advisors are friendly and non-judgemental, and their qualified, expert advice is confidential, balanced and without obligation. If you have assets, Trust Deeds are usually the preferred solution when measuring up Trust Deeds vs Sequestration. In order to be considered for a Trust Deed, you need to have an income. Only a licenced insolvency practitioner can administer a Trust Deed on your behalf and while there are no setup fees charged by Trust Deed Scotland® this may not be the case with other Trust Deed companies. If in doubt, you should ask the company what their setup fees are before proceeding and ask them for a full breakdown. You should never feel pressurised into proceeding Creditors can vote against your Trust Deed becoming Protected, and you may consider it important to choose a company based on their ability to ensure your Trust Deed is protected. Trust Deed Scotland® have a creditor acceptance rate of 99%. A Trust Deed would never be proposed on your behalf without explaining whether it was likely to be protected. Failure to keep up repayment of your Trust Deed could ultimately result in you being Sequestrated. Therefore it’s important that you only proceed with a Trust Deed when it’s affordable to you. It’s possible to try and shoehorn you into fitting the Trust Deed criteria, but this doesn’t serve your interests if it results in your Trust Deed failing. Trust Deed Scotland® will always have your best interests at heart, and our in-house team are with you every step of your journey. We’ll never sell your details onto another company.

Trust Deeds vs Sequestration – Alternatives

The Debt Arrangement Scheme is an alternative to both Trust Deeds and Sequestration. Find out more about the advantages and disadvantages of the Debt Arrangement Scheme and other alternatives in our Scottish debt solutions guide, or by calling us today on 0141 221 0999.

What’s a Debt Relief Order In Scotland?

Posted on by Craig Stocks
A DRO, known as a Debt Relief Order, is a solution to debt only available for residents of England and Wales. However, in Scotland, we have equivalent insolvency solutions that are just as effective. This is not uncommon due to the nuances of the different legislative systems in Scotland versus the rest of the United Kingdom, for example, there are also differences between IVAs and Trust Deeds. The first of these alternative solutions to the Debt Relief Order in Scotland is known as a Minimal Asset Process which is a means of writing off debts that you would struggle to repay within a reasonable time. The most common debt relief tool in Scotland is known as a Protected Trust Deed. Loosely speaking, this is Scotland’s equivalent of a Scottish IVA. You can find out more about the Benefits of Trust Deeds and Risks of Trust Deeds by calling Trust Deed Scotland® on 0141 221 0999. Try our Trust Deed Wizard to find out if you would qualify for a Trust Deed. Likewise, with both MAP and DRO, there is a Scottish equivalent of bankruptcy known as Sequestration. Lastly, in terms of legislated, formal statutory debt management solutions open to Scottish residents, there is the Debt Arrangement Scheme. Again, you can find out more about both the advantages of DAS and disadvantages of DAS by calling Trust Deed Scotland on 0141 221 0999.

Debt Relief Order vs. Minimal Asset Process?

Sequestration or Bankruptcy are the most severe forms of insolvency, with the biggest risks attached to them and consequences for homeowners and those with certain careers. Entering into either DRO or MAP is a decision that shouldn’t be taken lightly, and only after speaking to a qualified money advisor. Although both DRO and MAP are formal debt solutions, you do not need to appear in court. Both the Minimal Asset Process in Scotland and the Debt Relief Order in England or Wales are completely free to apply for. There is no minimum amount of debt that you can owe in order to be eligible for a Minimal Asset Process and the maximum is £25,000. The maximum amount of debt required to be eligible for a Debt Relief Order in England or Wales is £50,000. For an DRO application, you’ve got no more than £75 left over each month after you’ve paid your typical household expenses. For a MAP application, you have no disposable income. You cannot apply for either the Debt Relief Order or Minimal Asset Process if you are a homeowner and if you have a car valued at over £3,000, you cannot apply for a Minimal Asset Process. Debts are written off with a Debt Relief Order after 12 months whereas the Minimal Asset Process duration is 6 months. Self-employed, small business debt help solutions exist but generally, a Debt Relief Order or Minimal Asset Process may not be the best way of getting your finance back on track due to the restrictive nature and impact on your ability to obtain credit for cashflow purposes.

What debts can be included in a DRO/MAP?

Most unsecured debts can be included in a Debt Relief Order, or Minimal Asset Process in Scotland including credit cards, personal loans and council tax arrears. Debts that cannot be included in a Minimal Asset Process or Debt Relief Order are debts that may have been taken out fraudulently, child maintenance arrears, court fines and student loans.

Is the Minimal Asset Process right for you?

If you would like to find out if MAP bankruptcy is right for you, you can call us on 0141 221 0999. When you’re looking for Debt Help in Scotland, we would always recommend that you speak to an experienced debt adviser. You may similarly be asking yourself is a Trust Deed right for me, or is a DAS worth it. These are perfectly normal questions that we’re asked on a daily basis, and our experienced debt advisers not only specialise in providing debt advice but regularly get praised on Trustpilot for being non-judgemental and friendly. If you are considering reaching out for help with debts, debt advice reviews are an excellent place to start. We’ve gathered thousands of reviews where our customers tell us in their own words about their experience. Trust Deed Scotland® explain the pros and cons of all solutions and offer tailored recommendations based on your individual circumstances. However, once you’ve received the facts and fully understand how you may benefit from any solution, the decision should always be made by you.

What Is Sequestration In Scotland?

Posted on by Craig Stocks

What Is Sequestration In Scotland?

Sequestration is a form of bankruptcy in Scotland. It is a formal Scottish insolvency process in which a Trustee takes control of your estate to deal with the people you owe money to on your behalf. Sequestration is often an alternative to a Debt Arrangement Scheme, or a Trust Deed. You may find yourself considering Sequestration because you don’t have enough disposable income to be considered eligible for a Trust Deed. See also Minimal Asset Process. Once you have been Sequestrated, creditors are unable to pursue you or take any legal action against you to recover what they are owed. The Accountant in Bankruptcy may grant you your discharge by the end of the first year. However, depending on your circumstances, you may be required to make a contribution towards your sequestration for four years. Any assets of value, which could include the equity in your home, must be realised. The Insolvency Practitioner will contact your creditors on your behalf, taking away and stress and anxiety caused by creditor contact. If you have any assets, like a house or car, these may be sold to release funds for your Sequestration. Your credit rating may be affected and may affect your ability to obtain credit in the future. Some employers, such as financial institutions, don’t allow people who are bankrupt to work for them and you will no longer be able to act as a director of a limited company. It will state in your employment contract if Sequestration will affect your job or you can ask your HR department. You most likely won’t be able to become a charity trustee. If you are a homeowner and have equity in your property, or you have any other assets of significant value, your Trustee will be required to realise them. However, it may be possible to do so without the need to sell your home. If this is an issue the Trustee may suggest a Protected Trust Deed instead, or Debt Arrangement Scheme if this is affordable. Your Sequestration will be displayed on an online Register of Insolvencies which includes details of all ‘live’ cases plus those that were discharged in the past two years.

How Do I Apply For Sequestration In Scotland?

  Making yourself bankrupt by way of applying for Sequestration is a huge step to take and should only be considered after seeking expert debt advice. 1. Find out whether Sequestration is the right debt solution for you by speaking to one of our expert debt advisors. 2. If Sequestration is the right solution, You’ll need to pay a £200 fee to the Accountant in Bankruptcy (AiB) to apply for sequestration. If it is the Minimal Asset Process that you’re most suited to, the fee for this form of bankruptcy is £90. Call us on 0141 221 0999 for more information on how to apply for sequestration in Scotland. We’ll explain the criteria and the Sequestration pros and cons, as well as alternative debt management solutions.

How Long Does Sequestration Last?

  Your Sequestration is usually discharged after 12 months. However, repayments can last up to 4 years after you’ve been Sequestrated, and the effects on your credit score will last for at least 6 years. The length of Sequestration is a little more complicated than say Trust Deeds or the Debt Arrangement Scheme. If you were to qualify for a Minimal Asset Process, then you will be discharged from MAP sequestration after 6 months. At this point, your unaffordable debts are usually written off. However, if you do not comply, or your circumstances change, the MAP sequestration term may be extended.

What Happens After Sequestration?

  The period of Sequestration lasts 12 months. After this length of time, your Sequestration has ended and what happens next is that your Sequestration is officially been ‘discharged’. This is the most common length of time that a Sequestration lasts. Once you are discharged, your assets are not untouchable, however. New assets that you gain after your sequestration can be claimed by your Trustee for your creditors for up to 36 months after the Sequestration has ended. Life insurance payouts, inheritance for example, or as unlikely as it may seem – lottery wins, may then be claimed by your Trustee for your creditors. It is worth keeping this in mind when you plan your financial future after your Sequestration has ended. Securing a mortgage after Sequestration can be more difficult than with a Debt Arrangement Scheme or Protected Trust Deed, but not impossible. Some lenders specialise in providing mortgages to those who have been discharged from Sequestration. This is also dependent on your spending behaviour and whether it illustrates a responsible and trustworthy spending record. Employment options may be limited after the Sequestration has ended. Before you accept an offer of a new job at a new employer, you may want to check this with the new HR department in order to avoid any unpleasant surprises. It may be that you’re still able to accept a new role after you’ve been Sequestrated, but they may decide to amend or limit your job roles within the business.

Are There Alternatives To Sequestration?

  When you contact Trust Deed Scotland® for help with Sequestration, our expert advisors will ask you some simple fact-finding questions to fully understand your financial circumstances and provide you with a personalised illustration of what options are open to you. We would agree with you on the amount that you can realistically pay towards your unaffordable debts. If Sequestration is not right for you depending on your circumstances, we’ll then advise you on what other options are available to you and you’ll have all the facts you need to make an informed choice about your debt. When you ask for help from Trust Deed Scotland® we’ll always have your best interest at heart and never seek to ‘sell’ you a solution that may not be right for you and your lifestyle. No matter which solution(s) you qualify for, you’ll not need to deal with the conversations you would typically have with your creditors. This will help reduce any stress and anxiety that you may be feeling, or saving you time and hassle at the very least. We understand that opening up and talking about your debt isn’t easy and that is why we offer non-judgemental, friendly and confidential advice. You will be legally protected against creditor enforcement action. Additional interest and charges on your debt will be either frozen or written off. Some of the original debt itself may also be written off, depending on the route that you choose. Above all else, any debt management solution that you apply for will allow you to re-focus on your own life again and all you need to do then is continue making affordable monthly repayments. Give us a call on 0141 221 0999 to find out more, or get started by trying our free online Trust Deed Wizard® tool.