If you are a homeowner and thinking about applying for Sequestration & Bankruptcy, the level of equity in your property is calculated and the Trustee will release that amount for the benefit of the creditors. However, you can apply for Sequestration if you are a homeowner, or are privately renting, or even have no fixed abode. Depending on your debt level and ability to repay, you may qualify for the different Minimal Asset Process route to Sequestration.
It is possible to keep your home when entering Sequestration, though unlikely if your property has significant equity.
If the property has negative or no equity, the trustee may request a nominal sum to relinquish their interest in the home. This payment would normally be charged at £550 as per the Accountant in Bankruptcy Sequestration guidelines.
If you are a homeowner and wish to apply for Bankruptcy, we would always recommend talking to an experienced debt adviser who can talk you through the Sequestration process and alternative formal Scottish debt solutions such as Protected Trust Deeds and the Debt Arrangement Scheme.