Sequestration
(Bankruptcy - Scotland Only)
Some people in debt may feel the only option available to them is sequestration (Bankruptcy). This is not an easy option and we would recommend you explore other debt management options before deciding to apply for your own sequestration.
If you have sought the appropriate financial and debt advice then you may find the following information useful, Conditions for sequestration:
You must owe more than £1500.
Also one of the following has had to happen:
- Has one of your creditors served you with a charge for payment (14 day notice to pay)?; or
- Have any of your creditors served you with a statutory demand for payment (21 day notice to pay); or
- Has a summary warrant been granted against you for the recovery of rates, council tax, other taxes, etc, and some of your goods have been attached (or someone has attempted to attach them) and 14 days have passed?
If the answer is yes to any of the above questions and you have not been sequestrated during the last 5 years, you will be able to apply for your own sequestration.
LILA (Scotland Only)
LILA stands for 'Low Income, Low Asset'. LILA could offer a way into bankruptcy if you are on a low income and you have relatively few valuable assets to help repay your creditors when you are in debt. Low income means an income of no more than the standard national minimum wage for a 40 hour working week. Any pensions or maintenance payments that are received are also counted along with your income. Low assets means that you have no single asset worth more than £1,000 and your total assets are not worth more than £10,000. You cannot own or jointly own a house/property or land.
Contact Debt Advisory Service
For more information on Sequestration or LILA, please contact us for debt advice today on 08000 191 278, Email us at enquiries@debtadvisoryservice.co.uk or simply fill out our Debt Advice Enquiry Form.
