Hi SunnyM,

This is an important question that often causes confusion.

A trust deed isn't actually a form of bankruptcy, they are separate and different procedures.

Bankruptcy and trust deeds are however both forms of "personal insolvency".

So, if you're asked whether you've ever been bankrupt, then you can safely answer "no" (assuming you haven't previously of course).

That's not quite the end of it though. Some insurers includes restrictions about personal insolvency in their policies. That means you might get a policy, but in the event that you made a claim you might not get paid out.

Thankfully plenty of insurers don't do this also. However, if it were me, I wouldn't take out any particular insurance policy until I'd clarified that such a policy restriction doesn't exist.

Hi TDA - thanks, once again, for your advice. I shall be able to trawl through the companies now and will certainly mention that.