Sequestration is a formal insolvency process in which a Trustee takes control of your estate to deal with your creditors on your behalf. Sequestration costs £200. The Trustee is granted responsibility to investigate whether assets, including any property, should be sold to raise funds for creditors.
Depending on your circumstances, you may be required to contribute towards your Sequestration for four years. Any assets of value, which could include the equity in your home, will be realized for the benefit of your creditors.
Pros & Cons of a Sequestration (SEQ)
- Companies and people you owe money to can't make contact or take any action against you during the term of the Sequestration
- You can be debt free in a short amount of time
- Interest and charges are frozen, so your debts won't increase during the Sequestration
- If the equity in your home is £1,000 or less, and doesn't increase over the three year term, property does not need to be sold
- You can own a vehicle up to the value of £1,000 (or one that is specially adapted)
- Tools of trade are exempt as well as assets required for reasonable living and comfort are also exempt
- Any remaining debt at the end of your Sequestration is written off
Things to consider
- £200 set up fee
- Any unexpected lump sums must be paid into your Sequestration
- Your Sequestration will be recorded publicly, but removed 3 months after the Sequestration ends
- Your credit rating will be affected for 6 years from the date of default
- If you have any assets, they will be taken and used to pay off your debts
- People in certain professions will be affected - Judges, MP's, Company Directors, JP's, Qualified Legal Professionals, Accountants
- CCJ debts, and secured debts will not be written off
To find out more, simply call us today on our free phone number 0121 325 3800 or fill in the Call back form and we’ll call you back.