Where a bank or another lender holds a security (often /commonly called a mortgage) over land or a bricks and mortar property,
the bank does not require to go down the lengthy and expensive route of first calling up the loan on default. They can simply proceed down the faster and potentially less expensive route of personal bankruptcy in seeking to have their debt repaid, meaning the debtor could potentially be bankrupt within a period of 12-16 weeks from the commencement of the debt recovery process.
Sequestration is the term used in Scottish Law for entering bankruptcy. It may not hold the same stigma as in the past, but it should not be taken or entered into lightly.
