Trust Deed Forum | Scotland Forum - Recent Posts

Employment advice

Glen — Mon, 12 Oct 2026 19:02:31 +0000

I have recently split from my partner and with the debt outstanding I feel my only option is a trust deed however I work for hmrc and am worried it will effect my employment

im scared to raise the issue with my manager in case it starts misconduct proceedings

RE: Bankruptcy

Nick Smith — Mon, 05 Oct 2026 12:23:03 +0000

Hi MaterialGirl,

Until the final payment has been made towards the equity agreement and the Trustee has filed a Form 15 with the Registers of Scotland, the bankrupt joint owner’s interest in the home remains vested in the Trustee. The Trustee would be entitled to the full share of the bankrupt owner’s equity (and it would need to be the Trustee who signs the disposition etc…).

As for a new joint mortgage, I cannot offer specific advise on this. Assuming the individual has been discharged (usually at the one year anniversary), there may be lenders who will offer mortgage products, but the pool of available lenders will be much smaller until the bankruptcy has finished and fallen off the credit file.

Has anyone sold a house while still in bankruptcy in Scotland where there are two joint owners, but only one was bankrupt? Over 4 years into the bankruptcy.

I’m looking for anyone with actual experience of this situation in Scotland.

We currently own our home jointly. One joint owner went bankrupt (sequestration) and, at the time of the bankruptcy, the trustee calculated an amount relating to their share of the equity in the house. An arrangement was made to pay this amount rather than the house being sold.

There is still a balance being paid towards that equity.

The other joint owner has never been bankrupt and has a clean credit history.

We are now considering selling our current house and buying another property with a new joint mortgage.

Has anyone actually been through this situation?

I’m particularly interested in what happened with the sale proceeds, the outstanding equity amount, and getting a new mortgage.

Was the outstanding amount simply settled from the sale proceeds, allowing the property to be sold and a new mortgage to be arranged?

I’d really appreciate hearing from anyone who has actually experienced this in Scotland, rather than general advice about bankruptcy and if you did can you say which financial broker you used for this .

thanks in advance.

Bankruptcy

materialgirl — Sun, 04 Oct 2026 10:50:20 +0000

Has anyone sold a house while still in bankruptcy in Scotland where there are two joint owners, but only one was bankrupt? Over 4 years into the bankruptcy.

I’m looking for anyone with actual experience of this situation in Scotland.

There is still a balance being paid towards that equity.

The other joint owner has never been bankrupt and has a clean credit history.

We are now considering selling our current house and buying another property with a new joint mortgage.

Has anyone actually been through this situation?

I’m particularly interested in what happened with the sale proceeds, the outstanding equity amount, and getting a new mortgage.

Was the outstanding amount simply settled from the sale proceeds, allowing the property to be sold and a new mortgage to be arranged?

thanks in advance.

RE: Changing from director back to self employed

holyon66 — Fri, 02 Oct 2026 11:18:42 +0000

Been through something similar, director back to self-employed while still in a trust deed, and the decision itself was the easy part. What caught me out was the timing, my trustee cared far more about the income change than the title, and finding out after the fact would've been a much bigger problem than telling them upfront.

The funds owed question is the one that bit me, I assumed anything the business owed me would just reduce the original debt and it doesn't work like that. If the business is in negative equity and your partner carries on, that's really her liabilities to sort, not yours, but it's worth being clear on that in writing.

Director First is who I talked to when the business side got messy, they deal with directors in this exact position, though your own trustee is still the one whose answer matters most.

RE: No longer employed - need advice

Nick Smith — Fri, 02 Oct 2026 09:52:50 +0000

@holyon66 Individuals should be aware that granting a Trust Deed is a formal insolvency, which vests their estate in a Trustee for the benefit of creditors. The rules regarding benefit income only impact Contribution payments. Assets (or their equivalent values) must be dealt with as part of the Trust Deed, regardless of income position.

RE: No longer employed - need advice

holyon66 — Wed, 30 Sep 2026 04:38:36 +0000

Benefits generally can't be counted as income for trust deed payments, so that threat doesn't sound right. Worth getting proper advice from somewhere like Citizens Advice or a free debt charity before agreeing to anything.

RE: When does bankruptcy come off your file?

holyon66 — Wed, 30 Sep 2026 04:09:12 +0000

Defaults usually drop off six years from when they were registered, not from discharge, so that timing can vary. If everything's gone from your file already, you're likely past the reporting window.

RE: Emergency

holyon66 — Wed, 30 Sep 2026 04:03:27 +0000

Better to ask now than to just miss a payment, trustees tend to be more flexible when you flag it in advance. Hope they sort something out quickly given the circumstances.

RE: Light at the end of the tunnel

lizr — Sat, 26 Sep 2026 15:26:38 +0000

Apologies I should say my last payment was actually October 2024.

RE: Emergency

Nick Smith — Fri, 25 Sep 2026 13:38:00 +0000

Hi Housi,

Any decision regarding a payment break would be at the discretion of your Trustee, however in general terms a short payment break due to unforeseen expenditure or circumstances is fine. It's likely they would be agreeable to deferring the payment to the end of your Trust Deed.

The best advice I can offer is to contact the Trustee's office directly and arrange this with them.