However, you can still enter into a Trust Deed if you live in any other country of the United Kingdom when you have lived in Scotland at any point in the last 12 months.
This isn’t limited to people currently living inside the UK’s borders. Scottish ex-pats living in the EU and anywhere else in the world can still apply for a Trust Deed as long as they’ve lived here in Scotland at any point in the previous 12 months.
This rule differs from the Debt Arrangement Scheme, which unfortunately is not possible unless you are a current resident of Scotland.
Every week, Trust Deed Scotland® deal with similar enquiries from former Scottish residents now living in countries such as Australia and Canada as well as mainland Europe and in most cases, we can help those individuals deal with their debts at home in Scotland.
I’m originally a Scottish resident living in England. Can I do an IVA rather than a Trust Deed?
If you are a former Scottish resident but now living in England then yes you can enter into an Individual Voluntary Arrangement.
We recently wrote about the differences between IVAs and Trust Deeds and should you be in the unique position where you have lived in Scotland in the last 12 months and eligible for both solutions then there are some key difference between the 2.
Arguably the biggest difference is that a Trust Deed has a typical duration of 48 months compared to the IVA which lasts a typical duration of 60 months. For anyone in this position, you may find this to be a significant point of difference to consider but in reality, apart from this significant point – there are more similarities than differences between a Trust Deed and an IVA.
Applying for a Trust Deed in the EU?
While the on-going saga that is Brexit continues to be negotiated, a Trust Deed is unaffected by any situation that may, or may not be created as a result of Brexit negotiations.
The Trust Deed is an answer to your finances back in Scotland and has absolutely no connection with European legislation.
One difference is the new debts that you may accrue in the new country – if you have credit cards, loans or any other type of unsecured debts then these would not be included in your Trust Deed. It may be possible that an equivalent solution exists in the new country. For example in Germany, you may investigate Schuldnerberatung options.
However, even in English speaking countries such as the United States, Trust Deeds have a completely different meaning for example in the US, a Deed of Trust which relates to Real Estate.
If you do have unaffordable debts in the new country, you should seek local, qualified advice.
Will my debts follow me abroad?
Although your credit history in the UK may not follow you when you move abroad, any debts you owe will remain active. It will be difficult for lenders to take legal action against you if you’re living in a new country outside the United Kingdom, but it is not impossible for them to make an attempt to recoup the debt.
Why do I need to pay my debts off in Scotland if I have emigrated?
While it may seem possible to abandon debt in Scotland when you move abroad, apart from a moral responsibility to deal with the debts then arguable the biggest reason to make sure your debts have been dealt with is in the event that you want to return to the country with a decent credit rating.
Furthermore, while mostly an unlikely outcome, your lender may still employ a tracing agency to locate you in your new country. Though as mentioned above, it would be difficult for them to pursue legal action against you in a country where they have no jurisdiction.
More commonly – you just may find that you are unhappy in the new country for whatever reason. Ill health, redundancy and many other changes in your circumstances may bring you back home quicker than you expected.
Some people who move abroad may use a relative’s address as their UK contact address, and while it’s a myth that an address is blacklisted, rather than an individual – without mail redirection, some may find that final demand letters, calls and doorstep visits are a nuisance to their relatives back home, where their address has been used as the last known address.
If you plan on moving back to Scotland, those debts will still apply and might also lead to a decree being issued awhile you were away or your Sequestration. If you have assets here in Scotland, a debt collector or sheriff officer may try to secure a debt against them on behalf of the lender. If you still work for the same company who are based in Scotland, then a wage arrestment can still be applied for.
Creditors may be able to bankrupt you in the new country. Bankruptcy is recognised across borders in most European countries and many other countries across the world are signed up to international agreements where their courts or insolvency services will cooperate.
At the very least, default notices will be served against you which will result in a significant impact on your future creditworthiness.
Applying for a Scottish Trust Deed
The good news is that you can start your application for a Scottish Trust Deed online abroad, anywhere in the world.
If you’re looking for debt advice regarding your debts at home while you’re living abroad, you can contact Trust Deed Scotland and make us aware of your current location and difference in timezone and we’ll arrange a call back to discuss your debts at home. Or, you can call us on +00441412210999 from abroad.