Sequestration is the Scottish version of bankruptcy and is a formal insolvency process, whereby a Trustee takes control of your assets and will deal with your creditors on your behalf. It is often an alternative to a Trust Deeds if you do not have enough disposable income.
Although depending on your circumstances you may be required to make a contribution for a period of four years. Any assets of value which may include the equity in your home have to be realised. In certain circumstances, it is possible that you may be discharged at the end of one year.
So if you are in financial difficulty, Sequestration could be a good option for you.