Trust Deed

Entering a Trust Deed or Sequestration (Bankruptcy) will be recorded on the Register of Insolvencies which is publicly accessible, including these details.

When you enter a personal insolvency process such as sequestration (Scottish bankruptcy) or a Trust Deed, you may be concerned about what happens if you’re ill and unable to work for a period of time.

If you’re entering a Scottish trust deed, it’s important to make sure you transfer your current account to another bank before it is signed. This is because, if you owe money to the bank, they have the right to use the funds in your account(s) to ‘set off’ your debt with them.

Inhibition in Scotland is a type of ‘diligence’ or debt enforcement that involves obtaining an order of the court. It protects creditors’ rights to be repaid should property or land owned by their debtor be sold, or cash generated by remortgaging.

If you’re thinking of entering into a Scottish trust deed and you’re also a homeowner, you may be worried about how the arrangement will affect your home.

The re-opening of Trust Deeds has become a contentious issue in Scotland. Debtors who assumed that, having been discharged from their Trust Deed, no further action would be taken in relation to their insolvency.

The strict criteria applied by mortgage lenders make it difficult to obtain borrowing, even for those with a good credit rating. If you’ve entered into an Individual Voluntary Arrangement in Scotland, or a Trust Deed, unfortunately you won’t have access to borrowing until its completion.

Being in debt as a sole trader can be particularly concerning because you are personally responsible for the debts of your business.

The end of your Trust Deed will be marked with a formal discharge letter from the Trustee, and your entry on the Register of Insolvencies will be removed.

If you’re a Scottish resident struggling with personal debt and you’re considering a trust deed or sequestration as possible solutions, it’s important to realise that some types of debts cannot be managed within a formal insolvency procedure.

If you’re worried that the council might take action against you for non-payment of council tax, entering into a Scottish trust deed can be a beneficial step.

In Scotland there are 3 main options for those struggling with problem debt. Each one comes with its own positives and negatives, and also its own financial cost – both initial and on-going.