Bankrupt vs trust deed

[tinkerbell23]

Discussing with a friend...

Bankruptcy is severe yes..but dosent a trust deed have the same (devastating) effect on your credit rating?

X

[rojash]

Pretty much. However if you are bankrupt you can't continue in self-employment.

Pros and cons are here:
http://www.trust-deeds.co.uk/trust-deeds.html

[tinkerbell23]

Thanks rojash the person in question isnt self employed .. Ill have a look!!...

My friend is bankrupt and still had to make monthly payments- found that strange!!?

Obviously if you can afford a trust deed....its SLIGHTLY better to do so? X

[boxtops]

Trust deeds are peculiar to Scotland.

[tinkerbell23]

Yeh i know you can only get them in scotland...x

[wolf63]

Most things in Scotland are normal - it is the rest of the country (and the people) who are 'peculiar'.

[tinkerbell23]

Hahahaha x

[boxtops]

Tinks, this other post seems relevant, re the payments still being made http://www.theanswerb.../Question1091032.html

[tinkerbell23]

Thank u boxy!

Its a big thing to do...either ..isnt it x

[S_C]

the english alternative to trust deed is the Indepedant Voluntery Agreement

payment get made upto a period of 5 years to pay back as much as is possible and at the end any debts left owing can be claimed from property or written off if no assets available.

stil a slight bit better than bankrupt , but not by much

[tinkerbell23]

Either way...your buggered :0/

X

[S_C]

indeed .

[SWyllie]

A protected trust deed will have a similar impact on your credit record to bankruptcy. See: http://www.trust-deed...ectmycreditrating.php Other options (like Debt Arrangement Scheme or a Debt Management Plan) may be less initially severe but the credit consequences can last for longer in a typical case (because the debts have to be fully repaid, rather than it being a time limited process like a trust deed or bankruptcy).