Sequestration

Sequestration, in personal insolvency, refers to a legal process where an individual's assets and financial affairs are managed by a court when they are unable to pay their debts. When a person is sequestrated, their assets may be sold to pay off creditors, and they are granted protection from being pursued for remaining debts. This process aims to provide a fresh start for the individual, allowing them to manage their financial situation more effectively while ensuring fair treatment of creditors. It is commonly used in scenarios like bankruptcy.