"Sequestration" is the Scottish term for bankruptcy. It is the last resort for unmanageable debt. It can only be done if all other options have been exhausted. Recent legislation has made sequestration very similar to bankruptcy in the rest of the UK. This means that the disadvantages of bankruptcy are generally the same. However, there are some vital differences. Most importantly of all, in Scotland you can't be sequestrated unless you are one of three types of people:

> The three types of people who can be sequestrated

1. People who have been sequestrated by a creditor.This is unusual as they normally prefer to keep chasing you for money.

2. People who sequestrate themselves. In Scotland you can only do this if:

• You have tried a Trust Deed or a Debt Payment Programme and it has failed. Most people propose a Trust Deed first, and apply for sequestration if this doesn't work.

• You have received a 'Charge for Payment' or a 'Statutory Demand' from a creditor, or a 'Summary Warrant' from a local or public authority. These documents are like special bills, and if you cannot pay them you are allowed to sequestrate yourself. It is quite unusual to receive these documents.

• A court has taken control of your property.

• You have been made bankrupt or given a 'Receiving Order' elsewhere in the UK.

3. You have very low income and assets. In Scotland there is something called a 'Low Income Low Asset' Scheme (LILA) which allows you to make yourself bankrupt if:

• Your income is less than £229.20 per week

• You do not own a home or land

• Your possessions are worth less than £1000

In general, many people who have serious debt problems propose a Trust Deed first. Bankruptcy is then available as a last resort if the Trust Deed fails. For more informaiton and further advice, please contact us.

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