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Sequestration in Edinburgh – Scottish Bankruptcy Explained
Learn. Rebuild. Thrive. Sequestration is Scotland's formal bankruptcy process for resolving unmanageable debts when no other options are viable.
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Sequestration in Edinburgh is the Scottish equivalent of bankruptcy and writes off most unsecured debts after typically 12 months. You can apply through the Accountant in Bankruptcy if you have debts of £3,000 or more and meet the eligibility criteria. The Minimal Assets Process route is available for those with low income and few assets at a reduced application fee.
Edinburgh
Local area
Scotland
Region / jurisdiction
EH
Postcode area
Local financial statistics are only published when their source, geography and reference period have been verified. Unsourced estimates are not presented as local facts.
Verified local debt and court resources for Edinburgh
Debt law is largely national, but enforcement, court correspondence and face-to-face support can depend on where you live. Rather than inventing a local office or court, use the official services below to identify the current organisation serving your postcode.
- Courts and tribunals: GOV.UK Find a court or tribunal lets you search the official HM Courts & Tribunals Service directory for the court handling a case in or around Edinburgh. Always use the court named on any claim, judgment or enforcement document you have received.
- Free regulated debt help: MoneyHelper's debt advice locator can identify free debt-advice services available to residents of Edinburgh.
- Scottish insolvency: Accountant in Bankruptcy is Scotland's insolvency service and is the authoritative starting point for sequestration, protected trust deeds and the Debt Arrangement Scheme.
Local service boundaries, hearing venues and opening arrangements can change. These links deliberately point to authoritative locators rather than hard-coding a court or advice office that may later become inaccurate.
Frequently Asked Questions
What is sequestration in Edinburgh?
Sequestration is the Scottish term for bankruptcy. It is a formal legal process for individuals in Edinburgh (and across Scotland) who cannot pay their debts and have no prospect of doing so.
How do I apply for sequestration in Edinburgh?
You must apply through the Accountant in Bankruptcy (AiB) and usually need to seek advice from an approved money adviser or insolvency practitioner first to ensure it's the right solution for you.
What are the alternatives to sequestration in Edinburgh?
Alternatives for residents in Edinburgh may include a Trust Deed or the Debt Arrangement Scheme (DAS), depending on your financial situation and whether you want to protect certain assets.
How long does sequestration last for someone in Edinburgh?
In most cases, you will be discharged from sequestration after 12 months from the date your sequestration was awarded. However, the Accountant in Bankruptcy (AiB) can defer your discharge if you have not cooperated with the process or have committed an offence. Your trustee may also continue to administer your estate after your discharge if there are still assets to deal with.
Will sequestration affect my employment in Edinburgh?
Sequestration can affect certain types of employment in Edinburgh. You are legally barred from acting as a company director, and certain regulated professions — including some financial services roles, positions of trust, and roles involving fiduciary responsibility — may require you to disclose your sequestration. Some employers include clauses in contracts that are triggered by insolvency. It is important to check your employment contract and seek advice before proceeding.
What happens to my assets if I go through sequestration in Edinburgh?
When you enter sequestration, most of your assets pass to your trustee, who will sell them to repay creditors as far as possible. This can include savings, investments, and non-essential property. Your home may be sold if you have equity in it. Essential household items, tools you need for work, and a vehicle up to a certain value may be protected. The trustee will assess your circumstances carefully and you should seek advice to understand what you are at risk of losing.
What is a Protected Trust Deed and how does it differ from sequestration in Edinburgh?
A Protected Trust Deed is a formal voluntary agreement available only in Scotland, where you make affordable monthly payments over at least four years and any remaining debt is written off at the end. Unlike sequestration, a Protected Trust Deed allows you to retain more control and avoids some of the more severe consequences, such as automatic restrictions on acting as a director. It is only protected once enough creditors have agreed to it, at which point dissenting creditors are bound.
How will sequestration affect my credit file and future borrowing in Edinburgh?
Sequestration will be recorded on your credit file for six years and will significantly affect your ability to obtain credit during that time. You cannot borrow more than £2,000 without disclosing that you are sequestrated. After discharge and once the record is removed from your credit file, you can begin to rebuild your credit history through responsible financial behaviour and products designed for credit rebuilding.
How long does an IVA last in Edinburgh?
An IVA typically lasts 5 years, extended to 6 years if you have equity in a property. During this period you make one affordable monthly payment to your Insolvency Practitioner who distributes it to your creditors. At the end of the IVA term any remaining qualifying unsecured debt is legally written off.
Will an IVA affect my job in Edinburgh?
Most employees are unaffected by an IVA as it is not publicly announced to employers. However certain regulated professions including solicitors, accountants, financial advisers, police officers, and some civil service roles may have contractual or regulatory restrictions. Always check your employment contract and professional regulatory requirements before entering an IVA.
Can I keep my car in an IVA in Edinburgh?
You can usually keep a car in an IVA if it is essential for work or family needs and its value does not significantly exceed what is considered reasonable. Cars worth more than approximately £5,000 may need to be discussed as part of the IVA proposal. Many people successfully keep their vehicles throughout their IVA.
What debts can be included in an IVA in Edinburgh?
Unsecured debts that can typically be included are credit cards, personal loans, overdrafts, store cards, payday loans, catalogue debts, and utility arrears. Secured debts such as mortgages, student loans, child maintenance arrears, magistrates court fines, and social fund loans cannot be included.
How does an IVA affect my credit score in Edinburgh?
An IVA is recorded on your credit file at the date it is approved and typically causes a significant reduction in your credit score. It remains on your credit file for 6 years from the start date. After completion you can begin rebuilding through responsible use of credit builder products and maintaining all financial commitments on time.
What happens if I miss a payment in my IVA?
Missing one or two payments is not automatically fatal. Your Insolvency Practitioner can apply for a payment break of up to 6 months or propose a variation if your circumstances have changed. Persistently missing payments without communicating with your Insolvency Practitioner can lead to the IVA failing and creditors pursuing bankruptcy proceedings.
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Important: These educational pages do not constitute financial advice. All information is provided for guidance purposes only. We recommend seeking professional, FCA-regulated debt advice for your specific situation. YourFinances.co.uk is an information portal and does not provide regulated advice.
Published: 3 November 2025
Last Updated: 22 September 2026
Editorial Statement: This content has been prepared in accordance with FCA guidelines and reviewed against guidance published by The Insolvency Service and MoneyHelper. YourFinances.co.uk connects consumers exclusively with Licensed Insolvency Practitioners regulated by the IPA, ICAEW, and ACCA. We do not provide regulated financial advice ourselves. Debt solutions may affect your credit rating. Last reviewed Week commencing January 2026.