▪️no contact from people you owe money to – the people you owe money to (your creditors) can no longer contact you and instead have to deal with your trustee
▪️no more enforcement action – if you are thinking of setting up a trust deed, you can apply to the Accountant in Bankruptcy to stop your creditors taking any steps to recover the money you owe them. This is called a ‘moratorium’ and it lasts for 6 weeks. This will mean that your creditors can no longer take steps such as arresting your bank account. You can also apply for a moratorium if you are thinking of applying for bankruptcy or a debt payment programme under the Debt Arrangement Scheme. You can only apply for one moratorium in any one 12 month period
▪️ability to pay bills – you don’t have to show that you are unable to pay your bills as they fall due. This is sometimes called ‘apparent insolvency’. You have to be able to show this in order to apply for bankruptcy (called sequestration in Scotland)
▪️employment and public office – you are not barred from certain types of employment or public office as you would be under bankruptcy (called sequestration in Scotland)
▪️borrowing money – you are not legally stopped from borrowing money (obtaining credit) like a mortgage or a credit card, although this may be difficult to get in practice
▪️debts wiped out – your trust deed will usually come to an end after 4 years (called discharge). Most of your debts will be wiped out and you will not have to pay them back.