Sequestration

What is Sequestration?

Sequestration is a term for a type of insolvency similar to Bankruptcy used in Scotland. Following a court judgment, someone will be assigned to manage your estate, including selling off assets to pay off any debt owed.

There are two types of Sequestration:

Voluntary Sequestration where a borrower applies to the Court, after realising there is no way they can repay their debts. They must be able to prove they are insolvent and that it will be in the lender's best interests to do so.

Compulsory Sequestration where a lender applies to the court on behalf of a borrower, having found no evidence that the borrower will be able to pay through the usual channels.

If you are declared insolvent, your name and details will appear on the Register of Insolvencies indefinitely. This is publicly available to view, so will be visible to all prospective lenders, landlords and employers that see your Credit Report during your application. You may also have to disclose prior Sequestration when taking out a mortgage.


Q: How does it appear on my Credit Report?

A: Sequestration will appear under Court Information section of your checkmyfile Credit Report, along with information relating to the issuing court, the amount owed and whether or not the debt was satisfied.

If you haven't already, you can try checkmyfile FREE for 30 days, then for just £14.99 a month afterwards, which you can cancel online at any time.

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