While this is a legal requirement for all new insolvency cases in Scotland, the fact that the register is public can make some people nervous about who will be able to access their information and discover that they are not only in debt but have also entered into a debt solution.
In this guide, we’ll explore the Register of Insolvencies in more detail, including what it is, which personal insolvencies are listed, and who has access to it.
What is the Register of Insolvencies (Scotland)?
The Register of Insolvencies (ROI) is a publicly searchable database containing records of two types of statutory debt solution available in Scotland: Protected Trust Deeds and Sequestration (the Scottish equivalent of being declared bankrupt).
It is the Scottish equivalent of the Individual Insolvency Register in England and Wales – which registers all current bankruptcy, IVA, and Debt Relief Order arrangements – and the Individual Voluntary Arrangement Register in Northern Ireland.
If you’re entering into a Debt Arrangement Scheme (DAS), your details will appear on the DAS Register instead.
The Register of Insolvencies is operated by the Accountant in Bankruptcy, which is Scotland’s answer to the Insolvency Service.
If you enter into a Trust Deed in Scotland, your details are guaranteed to appear on the Register of Insolvencies.
The register can be accessed online and searched by name and is a useful source of information for some employers, landlords, and lenders.
What is a Trust Deed?
A Trust Deed is a legally binding agreement between you and your creditors (the individuals or businesses you owe money to) to repay all or some of your debts.
Trust Deeds are only available if you live in Scotland, have debts of over £5,000, and can afford to make monthly payments towards what you owe.
They can also only be set up and managed by a licensed Insolvency Practitioner (IP), who will become the Trustee of your arrangement once it has been approved.
Most Trust Deeds last four years and any remaining debts you have when you exit your arrangement will be written off (cancelled). This can allow you to make a fresh start with your finances.
As long as your creditors agree to your Trust Deed within five weeks of receiving it from your Trustee, it will become a Protected Trust Deed. Once this happens, your creditors won’t be able to contact you, add interest or charges, or take further action against you.
What personal details will appear on the Register of Insolvencies?
The following details appear on the register:
- Your name
- Your address
- The name of your Trustee
- Your Trust Deed start date
- Your Trust Deed discharge date (if you have one)
This level of detailed information might seem extensive, but it’s important for people searching the register to be able to tell the difference between one individual and another – especially for people with similar names.
For some people, having their details listed on a public register poses a security risk. It is important to note, however, that the Register of Insolvencies is designed in a way so that to not appear when typed into Google, Yahoo, or any other search engine.
If you think that having details of your address published on the ROI could put you in danger, you can appeal to the AiB to have it removed, but this is uncommon and you would need to have a particularly strong case.
How long will my details stay on the Register of Insolvencies?
How long your details stay on the insolvency register depends on the type of insolvency, but if you’re entering a Trust Deed, your details will remain on the register for five years.
Given a Trust Deed usually lasts 48 months, your details will typically remain on the Register of Insolvencies for another year after your arrangement ends.
This can make accessing further credit particularly challenging – even if your former debts have been settled.
How will a Trust Deed affect my credit rating?
Like most debt solutions, a Trust Deed will affect your credit rating in several ways.
For example, from the date your Trust Deed is approved, it will remain on your credit file for six years.
Because most Trust Deeds last four years, this means it may still be visible for another two years after you exit your arrangement.
While your Trust Deed is visible on your credit file, your credit rating will be lowered and you will find it difficult to obtain most forms of credit, such as a mortgage, loan, bank account, or phone contract.
Once your Trust Deed is complete and you’ve made your final payment, your creditors must inform the credit reference agencies that you have fulfilled your obligations and the debt has been settled. This, alongside any actions you take, will see your credit score gradually improve.
Who is likely to find out about my Trust Deed?
While anybody can access the Register of Insolvencies in theory, it’s not included in search engine results pages and someone would have to know exactly what they’re looking for to be able to find your entry.
This means that the only people likely to know about your Trust Deed are certain employers, landlords, and future lenders.
Employers
Employers might use the register to ensure an existing employee or potential candidate is legally allowed to work in their chosen field since access to certain occupations is restricted to people who have experienced insolvency.
These occupations typically include:
- The police
- The armed forces
- Financial services (e.g. an accountant)
- Law (e.g. a solicitor)
For most employers who have no specific policy on personal insolvency, however, they aren’t likely to find out about your Trust Deed and it’s unlikely to be a serious issue or threaten your employment if they do.
Landlords
Landlords might search the Register of Insolvencies to find out whether potential tenants have struggled with debt in the past and could potentially default on future rent payments.
This can be a useful indicator of how likely you are to manage your monthly rent payments and may result in the landlord asking for extra security, such as an advance payment, or for the tenant to have a guarantor.
Lenders
Because credit reference agencies have access to the Register of Insolvencies, having a Trust Deed will have an impact on your credit score and your access to further credit.
If credit reference agencies see that you’ve had trouble repaying your debts in the past, they are likely to reduce your score, which can make borrowing more challenging.
With any debt solution, though, you can rebuild your credit score over time, and worrying about your credit score should not put you off seeking help with your debts.
How can I rebuild my credit after a Trust Deed?
Fortunately, there are many steps you can take to rebuild your credit once you have been discharged from insolvency:
Obtain a completion certificate
Once you have completed your Trust Deed, you must ensure you have received a completion certificate.
This can be useful if a situation arises down the line in which you need to prove you have been discharged and don’t owe anything more towards the debt.
Update your credit report
Requesting a copy of your credit report regularly can help you ensure all the details listed, including your full name and current address, are correct.
Having incorrect details on your credit report could be unknowingly damaging your credit.
Even something as simple as your surname being misspelt could be unfairly dragging your credit score down.
Access new credit
Taking out a credit card might seem risky, but it can also be the best way to show lenders that you’ve moved on from your debts and can manage credit responsibly.
Make sure to use it sparingly at first, and pay your bills in full every month.
Missing a payment will have the opposite effect and cause further damage to your already-hurt credit rating.
Register to vote
Registering to vote – if you haven’t already – can help lenders verify your personal details and protect against fraud.
Generally, lenders are more likely to approve a credit application if they can confirm the information you have provided is correct.
