The 12-month discharge
Standard sequestration ends with discharge after 12 months. On discharge, most debts included in the sequestration are written off.
Discharge is automatic in most cases — no application is needed.
The Debtor Contribution Order
If AiB decides you have surplus income during the sequestration, they can impose a Debtor Contribution Order (DCO). This requires monthly payments for up to four years.
DCO payments continue separately from the 12-month discharge — you can be discharged from the debts but still be paying under a DCO.
The typical trigger is surplus income above a set threshold using the Common Financial Statement.
Asset realisation timelines
Property and other assets may take longer to deal with than the 12-month period. The Trustee can continue asset realisation beyond discharge without affecting your discharge status.
This can matter for homes — the sequestration remains "open" for asset dealing even after you are discharged from the debts.
Credit file impact
Sequestration appears on your credit file for six years from the date of the award. Because it runs 12 months, the credit file entry persists for about five years after discharge.