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This is the place to ask questions about Sequestration
By Pamela14
#22828
Hello can you help?

I have been told by a debt advisor that as I am renting and can only afford to pay £100 a month, it would be best to do sequestration. My debts are about £32000 all together. Is this right? I do not really like the sound of bankruptcy as I have heard that my name goes in the newspaper and I will lose most of my things.
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By Geraldine
#22841
Hello Pamela14 and welcome to the forum.

From what you have said, I think Sequestration will be much the best solution for you. You could try a Debt Arrangement Scheme (DAS) but that would take you over 26 years to pay your debt which is simply not reasonable. With bankruptcy you are likely to be debt free in 12 months and then you can concentrate on getting on with your life.

And just to confirm your name will not be published in the paper. This rule changed in 2009. In addition you will not lose all of your household goods. You will be able to keep these things unless they are extermely valuable.
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By Steve Jackson
#22978
Hello Pamela14

Geraldine is quite right. A Debt Arrangement Scheme would not be appropriate for you as it would simply take far too long to repay your debt. Sequestration is definitely the right thing for you. I echo what Geraldine has already said and confirm that Sequestration is not advertised in your local newspaper and given that you do not own any extremely valuable antiques you will be able to keep all your belongings.
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By Hayden
#23467
Hello Pamela14

As far as I am aware if you did try and apply for a DAS your application may well be rejected on the grounds that it will take too long to repay your debt. As such you would probably have to go for a debt management plan (DMP) which would have the added disadvantage that interest in not guaranteed to be frozen. Sequestration would definitely be a better option than this given your situation if you can see no way in the short to meduium term that you might be able to increase your monthly debt repayments.

Having said that if you are really not ready for sequestration at the moment there is absolutely no reason why you have to go down that route. You can absolutely start with a DMP and then see how things go. Once that is up and running and your finances are a bit more under control you can take stock and see how it is working for you. If things are going well you can stick with it in the knowledge that you can stop at any time and go down the bankruptcy route if at any time you feel this would be a more sensible solution.