Sequestration

Question 1

Acts which govern sequestration?

Answer 1

Bankruptcy (Scotland) Act 2016
Bankruptcy (Scotland)Regulations 2016
Act of Sederunt (Sheriff Court Bankruptcy Rules) 2016

Question 2

How is sequestration of a living debtor done? On the petition of?

Answer 2

Qualified creditor(s) if apparently insolvent
Temporary administrator
Member state insolvency practitioner
Trustee

Question 3

Monetary limit for raising a petition for sequestration?

Answer 3

£5,000

Question 4

What act introduced the change to the monetary limit?

Answer 4

Coronavirus(Recovery and Reform)(Scotland) Act 2022

Question 5

When must the debtor receive a daip prior to a petition for sequestration?

Answer 5

No less than 14 days before presentation

Question 6

Sequestration of deceases debtor?

Answer 6

On executor
Qualified creditor or creditors
Temporary administrator
Member state insolvency practitioner
Trustee

Question 7

What can’t be sequestrated?

Answer 7

Company registered under Companies Act 2006
Limited liability partnership

Question 8

Time period for sequestration of a debtor other than a llp or deceased debtor?

Answer 8

Within 4 months

Question 9

3 things that make debtor apparently insolvent?

Answer 9

Charge served with days specified in charge expiring without payment

Debtors estate sequestrated

Debtor grants a trust deed

Question 10

Form used for stat demand and time period for debtor to reply?

Answer 10

Form 5 and 3 weeks

Question 11

Form used for petition for sequestration?

Answer 11

Form 6.1-A

Question 12

What is served when citing a debtor for a petition for sequestration? And what must also be done?

Answer 12

Citation in Form 6.3-A
Copy of petition for sequestration
Copy of warrant of citation

Certificate of citation in Form 6.3-B lodged with sheriff clerk no later than 2 days before debtor cited to appear.

Question 13

Date appointed by sheriff for sequestration?

Answer 13

No fewer than 6 days and no more that 14 days after date of citation.

Question 14

How many days does the sheriff have to determine debtor will pay seq debt?

Answer 14

Within 42 days and sheriff may continue petition for no more than 42 days

Question 15

How many days does a sequestration have the power against before its petitioned?

Answer 15

Within 60 days

Question 16

When sequestration is effected what cannot be done?

Answer 16

Arrestment, money attachment, interim attachment or attachment of the debtors estate.

Question 17

What is a moratorium and which act is it governed by?

Answer 17

A moratorium prevents a creditor from taking certain enforcement action for a specified period of time

Bankruptcy (Scotland) Act 2016

Question 18

What cannot be done while a moratorium is in place?

Answer 18

Serve a charge for payment
Commence or execute diligence to enforce payment
Sequestrate
Release funds to a creditor

Question 19

What can be done while a moratorium is in place?

Answer 19

Auction an item which has already been attached/ removed
Implement a decree of forthcoming
Implement decree or order for sale of ship or cargo

Execute;
- earnings arrestment
- current maintenance arrestment, or
- conjoined arrestment order

Which came into effect before the day on which the moratorium began

Question 20

How long does a moratorium last and which act extended the previous period?

Answer 20

Last for 6 months
Begins day entry into register of insolvencies

Coronavirus (Recovery and Reform)(Scotland) Act 2022