Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Sequestration definition

What does Sequestration mean? In Scottish insolvency practice, sequestration is the bankruptcy process for an insolvent individual or partnership, under which the debtor’s estate is taken into custody and vested in a trustee for the benefit of creditors. It is governed by the Bankruptcy (Scotland) Act 2016. An award of sequestration may follow a debtor application to the Accountant in Bankruptcy (AiB) or a creditor petition to the sheriff court. On award, most assets vest in the trustee in sequestration; diligence is stayed; claims are adjudicated; and assets and income (via any Debtor Contribution Order) are realised to pay a dividend....

Scotland: Trustees’ powers and court procedures for realising the debtor’s home in sequestration, including Family Home consents, division and sale, sheriff’s discretion, re-vesting and secured creditors’ rights

Published by a LexisNexis Restructuring & Insolvency expert

Practice notes

The debtor's home in Sequestration

In most sequestration cases where a debtor holds assets, these often include the debtor’s home (see Practice Note: Scotland: the process for applying for sequestration). Frequently, it is the sole asset owned by the debtor, either outright or jointly with another, typically a spouse or partner. For definitions of regularly used Scottish Insolvency terminology, see Practice Note: Glossary of Scottish insolvency words and expressions. The trustee is obliged to realise that interest so it can be shared among the debtor’s creditors. Trustees generally wish to avoid the disruption and cost of removing debtors and their families, followed by the marketing and sale of their homes. They therefore usually prefer the debtor, or a third party, to purchase the trustee’s interest and will, where feasible, seek dialogue with the debtor to determine whether such an offer may arise. In many instances, the debtor is reluctant, or simply unable, to repurchase the property from the trustee. Where, in those circumstances, the debtor will not co-operate with the trustee in disposing of the home, the trustee will need to turn to the courts to progress the sale and enforce necessary steps concerning the debtor’s home to be taken to...

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James Lloyd

Harper Macleod LLP

James heads the firm's Insolvency team and has advised on corporate and personal insolvency related matters for a number of years. He advises creditors, banks and insolvency practitioners on all aspects of insolvency litigation. Chambers UK Guide to the Legal Profession lists James as a "Leader in the Field" in both Restructuring/Insolvency and Personal Insolvency, where he is noted for having a strong reputation in the market, his clients appreciate his ability to "do an extremely good job under difficult circumstances." Sources note "He's good. He tells you as it is." James has been recognised as a "World Leader" in commercial litigation by Who's Who Legal. James is a member of the team that won the prestigious "Insolvency Team of the Year" award at the Law Awards of Scotland 2012....

Stephanie Carr

Thorntons Law LLP

Stephanie joined Thorntons Law LLP as a Partner in 2023. She has over 18 years' experience acting for a variety of clients in a wide range of contentious personal and corporate insolvency cases, as a result of which she has been accredited, and re-accredited, as a specialist in Insolvency Law by the Law Society of Scotland.She is well known and respected in insolvency circles. She passed the Joint Insolvency Examination Board ("JIEB") exams in liquidation and personal insolvency and has a wide breadth of knowledge as a result of having attended the modules for the exams, where she also obtained a better understanding of the practical workings of the insolvency processes. She also regularly acts for clients in both secured and unsecured debt recovery matters and advises on a number of diligence measures open to them. Stephanie has advised and...

Web page updated on 21/05/2026

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