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This is the place to ask questions about Sequestration
#22168
Our business has failed and we are about to seek a Certificate for Sequestration from an Insolvency Practitioner. They will supply us both with a Certificate free but, to continue act on our behalf, they have requested £4000. What would be the advantage in this or should we take our chance with the Official Receiver appointed by the Accountant in Bankruptcy?

Also, our home is now in negative equity and we wish to voluntary surrender it and go into private rented accommodation. What should be our process and how will the administrator deal with this?
#22176
Hello Danyella and welcome to the forum. I am not sure why you would need to pay the insolvency practitioner to act on your behalf after you have been sequestrated. As far as I am aware, the official receiver in Scotland will manage your bankruptcy and this will be done for free. I would not go parting with £4000 before find out exactly what you are supposed to be getting for your money.

In terms of your property, if you want to let it go, the best thing to do is find alternative accommodation first. Once you have moved you can then inform the mortgage company that you will no longer be paying the mortgage and ask them to repossess. Once the house is sold, any shortfall will be included in your sequestration and the OR will then deal with it.
#22188
Hi there Danyella

If you want to declare yourself bankrupt an you live in Scotland, one of the easiest ways of doing this is to apply for a certificate for sequestration. As you have indicated, you can apply for a certificate for sequestration from an insolvency practitioner or a local money advisor. Once this has been granted, you must then apply to be made bankrupt to the Accountant in Bankruptcy which will cost £100. The AiB will then appoint a Trustee to manage your case.

As has been indicated to you, if you use an IP to get your Certificate for Sequestration you can also ask for them to be put forward as your bankruptcy Trustee. However before agreeing to part with any money I recommend that you find out from them exactly what benefits then can offer over simply going with the Trustee appointed by the AiB
#22202
Hi Danyella

That is good advice from Steve. Before parting with any cash find out what the IP you are using says they will do for you that the AiB appointed Trustee would not. As I mentioned before, £4000 seems a lot of money to me!
#22886
Your local council should have a money advisor that can provide a certificate for sequestration

I just registered to post a bit about your house

If you can afford the mortgage payments you could keep your house and still be sequestrated.

IF your house is in negative equity and the AIB valuation agrees then it will cost them money to sell your house, so they won't bother.
You need to get a third party to pay a fee (usually £515.00) to the AIB or the AIB agent. They should "revest" the house back to you- after this the house remains yours as long as you pay the mortgage.

:mrgreen:
#22900
I agree with fatandskint

If your objective is to keep your house if at all possible Danyella, as it is in negative equity once you are bankruptcy you (or more specifically a third party) will be able to buy back your beneficial interest in the property from the AiB for a nominal fee. Then your house and any future equity that builds up in it will be yours to keep.

However if you cannot pay your mortgage and simply feel that you want to hand back the keys and have done with it, then this would be an ideal time to allow your property to be repossessed. After you have been declared bankrupt the shortfall on the mortgage (when eventually crystalised after the house is sold by the mortgage lender) would be included in your bankruptcy estate and you would not be personally liable for its repayment.