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It’s important to remember that no debt solution is perfect and there is no ‘one-size-fits-all,’ which is why we recommend speaking to one of our expert debt advisors about your options and next steps.


Sequestration is a form of insolvency that writes off the entirety of a person's debts with only a one-time administration fee paid by the debtor. Sequestration is usually a last resort due to the implications it can have and should be considered carefully.

What is sequestration?

Sequestration is a debt solution that writes off the entirety of your debts if you cannot afford to pay them. There is a one-time administration fee of £150. It's a legal process that can give you a fresh start if you have no hope of paying your debts back.

Is sequestration right for me?

Sequestration may be suitable for you if you are insolvent - meaning that you cannot pay your creditors when your bills are due or that your total debts are greater than the value of your assets. Sequestration can have serious implications on your personal, financial and professional life and so should be considered carefully. Sequestration is only available to residents of Scotland. For residents of England, Wales or Northern Ireland, bankruptcy is a similar solution.

Is sequestration legally binding?

Sequestration is a legally binding process and once your sequestration has been agreed with your creditors, they can't take any further action against you to recover your debts.

How much of my debt will sequestration write off?

Sequestration will write off the entirety of your debts with only a few exclusions such as court fines, loans from the Student Loans Company and child maintenance arrears.

About Freeze Debt

Freeze Debt are the UK's multi-award-winning debt advice and solutions app. Since the App launch in 2019 it has helped thousands of users deal with over £30m of debt  

Sequestration Pros

  • Once discharged from your sequestration, the balance of your debts will be written off.

  • You are only required to make monthly payments towards your sequestration if you can afford to do so.

  • Once entered into sequestration, your creditors are legally obliged to freeze interest, fees and charges.

  • Your creditors can't take any legal action against you once you've entered into sequestration.

  • Most unsecured debts are included in sequestration

Sequestration Cons

  • Taking out further credit may be difficult, as sequestration will be recorded on your credit file for six years.​

  • Your sequestration will be recorded on the publicly available Register of Insolvencies. 

  • Any assets of value – including your home and car (unless exempt) – may be sold to repay your debts. 

  • Sequestration may have implications for your job – for instance, you will not be able to act as a company director. 

  • Any windfalls will normally be expected to be offered as contribution towards your sequestration.​

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