Scottish Trust Deeds and their affect on employment – A Trust Deed could be something you’re feeling anxious about people finding out about, so here are some clear facts that help to explain exactly how trust deeds and employment may affect you, and what to do about it.

What is a Scottish Trust Deed?

Well, a Scottish Trust deed is a formal, legally binding document that transfers part or all of the debtor’s assets (this could be money or property) to a trustee.

This trustee will manage the debt for the benefit of the creditors. The trustee will probably ask the debtor to pay a sum over to them from their income, on a regular basis.

If you have a Scottish Trust Deed, you’ll see the advantages. It avoids the expense and stigma of formal bankruptcy and there are no penalties, investigations and there are fewer disqualifications.

However, many people worry about the effect a Scottish Trust Deed could have on their career or job prospects. You could be worried because:

You think your employer won’t trust you to do your job properly
You think your employer will judge you or sack you
You think future employers will avoid you and you won’t be able to get a job
You think colleagues will talk about you

So, does it have any effect on your prospects and career? Here we look at a few important points.

Who’s going to tell them?

It is very unlikely that your employer will find out you have a Scottish trust deed. Yes, it is published in the AIB Register, but your employer would have to be reading through thousands of names to find yours.

Tip: You don’t need to discuss your Trust Deed at work. Your colleagues may pass the information around and it could get back to your boss. It’s private information, so try and keep it that way.

When you should tell your employer

Some professions of responsibility, such as jobs where you are handling money, will require you to declare your financial background. It may be your responsibility to let them know. This is because you could be considered a ‘risk’ and open to blackmail or corruption within the company. A Scottish trust deed can also affect your credit rating.

The police and the fire service are two professions which would need to know. Some professional bodies of accountants also have rules regarding their members being involved in any form of insolvency.

Tip: Check your employment contract – if you’re unsure, speak to your Professional Standards team.

You need to be employed to have a Scottish Trust Deed, anyway

You must have a job and afford around £90-£300 of disposable income every month to begin making payments on a Scottish Trust Deed.

However, this is only a rough guideline and there are also alternative solutions such as the Debt Arrangement Scheme

You cannot pay off your creditors using money you receive from benefits. You must use salary from your job.

This means you would already have a job in place when the Scottish Trust Deed is set up.

If you’re changing your career or applying for jobs

If you are considering applying to train in the police, the fire service or the prison service, you will need to go through a financial vetting process. This could flag-up your deed and give you trouble getting your job.

Tip: If your employer questions you about a trust deed, it is a good idea to be honest with them.

Remember, your deed is a symptom of a past problem, and is not a problem in itself. Yes, you may feel awkward about your deed, but it is better that, than having an out-of-control debt issue.