Hi David_xj6 and welcome to the forum.

Being a sole trader with a shop premises carries some additional complications which means that the Trust Deed isn’t as straight forward as you might think.

How much debt do you currently have and who do you owe the money to? If you have found yourself in financial difficulty then is the shop trading at a profit and is it viable.

Is the lease for the shop in your sole name? within most leases there is normally an irritancy clause and if you enter into a Trust Deed or Sequestration it can terminate the lease.

Also, like you have advised a Trustee would need to look at the stock of the shop along with the equipment. This value would need to be obtained by the Trustee and this could involve the sale.

An alternative to a Trust Deed could be a Business Debt Arrangement Scheme. Something worth exploring further.

The best thing to do is speak with a qualified expert who has experience in dealing with sole traders / shop owners and whatever you decide to do make sure you receive in writing exactly how things will work.

Hi David

It will come down to the numbers. If by allowing you to retain the stock and continue trading then creditors can expect to get a better return in the long run then this is certainly something that can be proposed and we have successfully arranged for sole traders such as yourself in the past. As David says though, whether his is true will depend upon how profitable the shop is once the debt is taken out of the equation.

A business Debt Arrangemnt Scheme would only be an option if you were trading as a partnership, but an ordinary DAS could do the job just as well for a sole trader such as yourself. Again it will come down to the numbers though and how much you can afford vs how much debt you have. Are you able to elaborate further?