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Home / Sequestration (Scotland) / Does sequestration affect my credit rating?
SEQUESTRATION (SCOTLAND)

Does sequestration affect my credit rating?

Yes. Sequestration is recorded on the Register of Insolvencies and remains on your credit file for six years from the date of the award.

The six-year credit file entry

Sequestration is added to your credit file at the date of the award. It stays for six years.

During those six years, mainstream credit is very difficult. Subprime lenders may lend at high rates.

The Register of Insolvencies

While active, you appear on the public Register of Insolvencies. On discharge, your entry is removed.

Existing credit and accounts

Existing unsecured credit is closed. Bank accounts with overdrafts are usually closed.

Basic bank accounts remain available.

Mortgages and secured car finance continue.

Rebuilding after discharge

Discharge starts the rebuild. Credit-builder cards, controlled use, letting the six-year clock run.

Key takeaways

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