What are the terms of a sequestration or bankruptcy order in Scotland?

The terms of your sequestration order will broadly be as follows.



A trustee will be appointed to take charge of and then sells anything that you own of value, but you will be entitled to keep certain things that are considered essential items (see If I'm made bankrupt do I lose everything? for more details).

Your trustee will then tell you your responsibilities will under a sequestration order.

You cannot get credit for goods or services for more than £500 from any lender or supplier without telling them that you are bankrupt. If you do not tell them you may be guilty of a criminal offence.

If you already have credit of £1,000 or more in total, you cannot get any credit whatsoever for goods or services without telling the lender or supplier that you are bankrupt. Again, you may be guilty of a criminal offence if you do not tell them.

You will also not be able to start up a limited company or be involved in the day-to-day management of a limited company.

And you will not be able to act as a Member of Parliament, as a member of any local council, a Justice of the Peace or a member of a school board.

Your trustee may also want you to make a contribution from your income or pension to help towards paying for the cost of your bankruptcy and your debts (see What happens to my wages if I'm made bankrupt? for more details).

You must co-operate fully with your trustee at all times and
keep your trustee informed of any changes in your circumstances, such as if you change address or if your financial circumstances change.