Sequestration operates under Scotland’s bankruptcy framework
Scottish bankruptcy, also known as sequestration, involves a trustee and duties concerning information, assets and changes in circumstances. AiB’s debtor guidance explains cooperation and borrowing-related disclosure responsibilities. Those rules should not be replaced with figures or procedures from England and Wales. A person considering credit needs to establish the current case status and any additional restrictions that remain in force.
Tell the trustee about the financial change behind the request
A new expense, an inheritance or changed earnings may affect the administration differently. Discuss the facts with the trustee and seek independent advice about the proposed commitment. Borrowing without a realistic prospect of repayment can create further problems and may be relevant to restrictions concerning conduct. The review should also consider obligations that survive the process, rather than treating bankruptcy as permission to begin a fresh cycle of unaffordable debt.
