Is a Trust Deed or Sequestration public knowledge?

What is the public register in Scotland that records personal insolvency?

Trust Deeds and sequestration are both formal debt procedures available to Scottish residents who are dealing with severe financial issues. Both processes enable you to become free of debt and start again financially, although there are characteristic differences.

When people enter into any form of debt solution, a common concern is whether it will become public knowledge. This can be an issue for a number of reasons, including the potential effect on employment.

What is a Trust Deed and sequestration in Scotland?

A Scottish Trust Deed is an effective method of dealing with higher levels of debt, and protects you from bankruptcy. It may be suitable if your unsecured debts total £5,000 or more.

A repayment plan is set up giving careful consideration to your essential outgoings, so you aren’t overstretched financially. This increases your chances of being able to continue the Trust Deed throughout its term.

Sequestration is the Scottish term for bankruptcy, and this involves handing over all your assets to a Trustee. The assets are then sold at auction, and the proceeds used to repay part of your debt.

How can a Trust Deed or sequestration affect employment?

In some professions, including law and accountancy, there may be an issue if you should get into debt. Other types of employment could also be affected, such as the police or prison service.

It’s definitely worthwhile checking your contract of employment for any specific references that might lead to disciplinary action. It’s also worth noting that you could be prevented from holding certain offices in the future, such as school governor or treasurer.

Those typically searching the Register of Insolvencies include creditors, credit reference agencies, and banks, rather than members of the general public. So even though a Trust Deed or sequestration becomes public knowledge, the details may only be seen by a limited number of people.

If you’d like more information on Trust Deeds and sequestration, or indeed any other forms of debt help, please get in touch with Scotland Debt Solutions. We operate a network of offices in Scotland, and can offer free, same-day meetings.