Would a Scottish Trust Deed affect my employment?

by Susan Paige on July 24, 2019 · 0 comments

If you find yourself in debt then having a regular income will be an obvious priority.  After all, without an income then you simply can’t start to address any debts you might have.

In this article we answer some of the most frequently asked questions about Scottish Trust Deeds and how they can affect a person’s employment status.

1. Would my employer have to know that I’d entered into a Scottish Trust Deed?

This very much depends on two key issues, namely:

  1. The type of job you do and;
  2. The terms of your employment contract.

For some profession types (such as the police, armed forces, solicitors and accountants etc.) then there is a requirement that any such debt arrangements are notified and in some cases, this can lead to unemployment.  It’s therefore imperative that you’re absolutely clear on whether any decision to enter into a Scottish Trust Deed would result in you losing your employment and ultimately, your income.

For other employees exempt from these profession types, there may well be a clause within your contract of employment which states that you must either notify your employer of any such arrangement and/or be aware of the potential consequences of doing so.

Due to the serious nature of this particular issue it’s imperative that you speak with your Trustee about any specific concerns you might have and ideally, show him or her a copy of your contract so that they can give you the very best IVA advice

2. Why would an employer see me entering into a Scottish Trust Deed as a bad thing? Surely it’s in everyone’s best interest for me to get out of debt?

Whilst many employers would agree that it’s important for you to get out of debt (and thus reduce your stress levels in the process), others consider certain roles to carry a privileged position.  This might be due to the fact that you’re responsible for handling client money, or your debts could make you vulnerable to corruption or blackmail.

If you’re unsure how your employer might view any such arrangement then you could always speak with your HR department for confidential advice on the matter.

3. Do I have to be employed to enter into a Scottish Trust Deed?

Yes.  You must have a regular income from paid employment (i.e. not benefits) and have at least £150.00 – £200.00 per month disposable income, for onward distribution to your creditors.

4. Could a Scottish Trust Deed prevent me from getting a job?

This very much depends on the type of employment you’re looking for.  However, you should remain mindful that certain professions (such as banking roles, the emergency services and so on) will require that you undergo financial vetting as part of the recruitment process.  Because details of your arrangement will appear on your credit record for a period of six years then this should be a serious consideration if you’re intending to apply for such a role in the future.

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