You think you’ve found the answer to your prayers. You’ve done some research and it looks like Scottish Trust Deeds will are the simple debt management system you desperately need. It seems the only way you can stop creditors from hassling you, pay off a manageable amount of your debt each month and write off the remainder at the end of the repayment term. There’s just one problem – how will a Scottish Trust Deed affect your career or job prospects? Actually, it’s a lot less of a worry than you think. Below are some of the most frequently asked questions relating to Scottish Trust Deeds and employment matters;

Can I be unemployed to have a Scottish Trust Deed?

No. You need to have around £150-£200 of disposable income – that is money left over once you pay off all of your living expenses – to begin making payments a job is usually the only way. Creditors cannot be paid using money you receive from benefits.

I’m applying for jobs – can Scottish Trust Deeds affect my ability to get one?

It could only be a problem if you are applying for a job that has a strict financial vetting procedure, such as the Police, the Fire Service or the Prison Service. You may not be considered suitable in light of having such an agreement in place, particularly for the Police, which is known to be very strict about vetting.

It is often frowned upon councils if you are a self employed council service contractors and you may be required to undertake financial vetting during a tendering process. However the council usually highlight this in their tendering brief documents so you will be aware in advance.

Why do these jobs not like you having Scottish Trust Deeds?

It’s all boils down to being in a position of trust or having a responsibility for handling money. Specifically if you are in a privileged position regarding access to information and money, you could be vulnerable to corruption or blackmail if you have a large unmanageable debt. Although you are managing your debt with a new formal arrangement with your creditors, it still shows at some point in the past you could have been on the verge of bankruptcy and vulnerable to outside influences.  Some professional bodies representing solicitors and accountants also have rules regarding their members having these arrangements in place.

Should I tell my employer I’m considering a Scottish Trust Deed?

Not necessarily. It is extremely unlikely for them to find out unless your employer is one of your creditors or you are in a profession where it is frowned on. A Scottish Trust Deed  has to be advertised in the Edinburgh Gazette, so there is a very slim chance someone may find out, but there are thousands of notices advertised and your employer would have to be reading it from cover to cover to find your name in among the thousands. Please be aware though that it makes sense not to discus any new financial arrangements at work in case one of your co-workers mentions it to your boss in passing.

If Scottish Trust Deeds are really your only option and you are a member of the Police, Fire Service, Prison Service or a professional dealing with money, check your employment contract to see if there is a ‘restrictive covenant’ – that is a clause that stipulates you must not enter into such arrangements with your creditors. If there is, speak to your employer’s Professional Standards and/or Welfare team before going ahead.

Would my employers fire me if they find out I have a Scottish Trust Deed?

In the majority of companies, Scottish Trust Deeds would not impact on your ability to do your job so it is very unlikely you would be fired if your employers found out. If you are in a position of trust or have a responsibility for handling money, it would be wise to confidentially talk to someone at your work and get advice on the most appropriate options. Debt affects everyone irrespective of job so it is likely your employer has dealt with the situation before.

For many people, a Scottish Trust Deed is the perfect solution to the burden of unmanageable debt. However, it is important to remember how Scottish Trust Deedsaffect employment as it may restrict your current working conditions.

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