Sequestration
What happens to my house if I am sequestrated in Scotland?
General information only. Everyone in this position needs independent debt advice.
The short answer
In sequestration, a trustee is appointed and the debtor's interest in heritable property generally transfers to them. The trustee decides how that interest is dealt with, and there are statutory time limits on how long it can be held. Selling, transferring an interest, or agreeing terms with the trustee are all possibilities, but none of it should be attempted without free independent debt advice.
What this means
Sequestration is the Scottish form of personal bankruptcy, administered through the Accountant in Bankruptcy. It is not the only debt route — a protected trust deed or a Debt Arrangement Scheme plan may suit better.
Where a home is jointly owned, only the debtor's share passes to the trustee. The other owner's share does not.
Selling or transferring property shortly before sequestration can be challenged. Take advice before moving anything.
Your possible options
These are possibilities to consider, not recommendations. Which of them fits depends on your own circumstances.
Free independent debt advice first
An approved money adviser can compare sequestration with a trust deed, the Debt Arrangement Scheme, or an informal arrangement.
Deal with the trustee
Where there is equity, the trustee will consider how to realise the debtor's interest. Family members sometimes buy that interest.
Specialist advice: The trustee's duties are statutory; agreements must be made through them.
Sell before matters reach that point
Where there is equity and time, a sale may clear the debts and avoid sequestration altogether.
Specialist advice: Only after debt advice, because a sale can affect other options.
Do nothing without advice
Transfers to relatives, or selling at less than value, can be unwound by a trustee and can make the position worse.
Specialist advice: Scottish solicitor and money adviser.
What should I do first?
- Speak to a free, approved money adviser before contacting anyone else.
- List every debt, not only the mortgage.
- Establish who is named on the title and on each debt.
- Ask the adviser to compare sequestration, a trust deed and the Debt Arrangement Scheme.
- Take legal advice before selling, transferring or gifting any property interest.
You may need specialist advice
Lothian Property publishes property information. It is not a law firm, lender, financial adviser or estate agent, and the professionals below are independent of us.
- Independent debt adviser
- Free, impartial help is available from services such as Citizens Advice Scotland and the Money Advice Service.
- Scottish solicitor
- Scots property law differs from England and Wales. A solicitor regulated by the Law Society of Scotland can advise on your specific position.
- Your lender
- Lenders can only discuss your account, redemption figure or forbearance options with you directly.
- Conveyancing solicitor
- In Scotland a solicitor normally handles missives, title and settlement, and often the marketing too.
What to do next
Understand your property position first
Tell us about the property and what has changed. We will set out what the information says, with no obligation to sell and no pressure to decide anything today.
Common questions
- Will I automatically lose my home if I am sequestrated?
- Not automatically. The debtor's interest passes to the trustee, who decides how to deal with it within statutory time limits. Whether the home is sold depends on the equity and the circumstances.
- What happens to a jointly owned home?
- Only the sequestrated person's share is affected. The other owner keeps their own share, though in practice the trustee's interest still has to be resolved.
- Can I sell the house myself first?
- Sometimes, but a sale shortly before sequestration can be challenged, especially if it is at less than value. Take advice from a money adviser and a solicitor before doing anything.
Sources
- Accountant in Bankruptcy — government
- Citizens Advice Scotland — charity
- Shelter Scotland — housing advice — charity
- Law Society of Scotland — find a solicitor — professional body
Related situations and guides
About Lothian Property
An independent starting point, not an estate agency
Lothian Property is an independent property information and introduction service. We are not an estate agency. We help homeowners understand their property, their options and their local market, and — where appropriate and only with your permission — introduce them to independent estate agents and other property professionals who can assist.
How Lothian Property worksPrepared by Lothian Property. Information last reviewed 2026-09-04; next review due 2027-03-04. General property information for Scotland, not legal, tax or financial advice. Editorial policy.