Unable to Pay Anything to Your Creditors?

Sequestration is the Scottish legal term for bankruptcy. At TDC Solutions Limited we believe that due to the adverse affect on your credit history, applying for sequestration should be considered as the final option in order to reduce your existing debts and should therefore only be used as a last resort.

If you are unable to pay anything to your unsecured creditors then Sequestration may be the right option for you. Other solutions such as a Protected Trust Deed or Debt Management plan, which rely on the ability to make a monthly contribution, offer different routes to help pay back your creditors without having to declare sequestration and will not have the same damaging affect on your credit history.

Advantages:

  • No more calls or harassment from your creditors
  • No more legal action can be taken by your creditors
  • No payments to your creditors but you will have to pay any agreed disposable (surplus) income to your Trustee
  • Any benefits or pensions continue to be your own
  • Assuming you comply with the requests of your Trustee You will be discharged from your sequestration after 12 months - though agreed monthly payments may continue for 3 years
  • You will know exactly when you will be debt free

Disadvantages:

  • All valuable assets, including endowment policies and your home may have to be released for the purpose of your creditors
  • Sequestration may hamper job opportunities and you will not be able to work as a company director etc
  • You will find difficulties in obtaining credit after being discharged from your sequestration and it can affect your credit rating for 6 years