One of the most frequently asked questions about Scottish Trust Deeds is whether it’ll affect your employment – and whether your employer needs to know about it.
The answer to this quite simply lies within your contract of employment and should certainly be checked from the outset to ensure you’re absolutely clear about what it might entail for you.
Will I have to inform my employer about the Trust Deed?
Ordinarily the answer to this is ‘no’. However. It also depends on whether it’s included as a restrictive covenant clause within your contract of employment. You should show a copy of this to your chosen advisor so that he or she can check it and advise you accordingly. Some professions quite clearly stipulate that you’re not allowed to be sequestrated or be involved in any other form of insolvency. These professions typically include the police service, fire service and prison service. Other examples might include any type of role where you’re expected to handle client money – for example, accountants or solicitors. Consequently, if your job falls under a regulatory body then it’s advisable to make further enquiries before you commit yourself to anything.
What would happen if I failed to inform my employer about the Trust Deed?
If your contract quite clearly states that you must inform your employer of the Trust Deed then you could be subjected to disciplinary proceedings. This can be a very serious consequence – especially if you’re relying on your income to repay your creditors on a monthly basis.
Will anyone write to my employer about the Trust Deed?
This is highly unlikely although if you have any specific concerns you should raise these with your advisor.
If you enter into a Trust Deed then you must remember that details of it will appear in the Edinburgh Gazette. That said, unless your employer specifically shifts through thousands of entries it’s unlikely to get noticed.
Do I have to be employed to enter into a Trust Deed?
Yes. You must be employed and also have at least £150.00 disposable income each month. If you’re not able to afford this amount then it’s likely that your repayment proposal will be rejected. If that happens then your creditors could apply to make you bankrupt.
You can’t use any money which you receive in the form of benefits to enter into a Trust Deed.
Could a Trust Deed affect my ability to get a job?
If you’re thinking of applying to certain professions (such as those already mentioned above) then it’s likely you’ll have to go through a vetting process. The same is also true of certain bank workers or those with any degree of responsibility for other people’s money. Consequently, it could affect your ability to get certain roles – hence the reason why you need to be clear on this prior to entering into one.
If you’re self-employed and registered as a company director then this could also cause a problem and should certainly be discussed with your advisor.