Sequestration is the Scottish term for bankruptcy and can be entered into by an individual who is a sole trader, a partner of a partnership or a partnership entity itself. When a partnership enters bankruptcy, the individual partners usually enter bankruptcy at the same time.
A partnership cannot continue to trade once Sequestration is awarded, however there are certain circumstances where a sole trader may be permitted to continue to trade.
Sequestration is usually the last resort when all other possible options have been exhausted. We recommend that if you are considering Sequestration, please contact us to discuss other options that may be available to you.