A Trust Deed While Working For A Bank
If you work in a bank and are struggling to pay your debts you may be thinking about entering into a Scottish trust deed. In this article we’ll review some of the common concerns that people who work for banks have about entering into protected trust deeds.
Working for a bank (or another type of financial institution) does not in itself prevent you entering a protected trust deed. However, one concern that bank workers may have is that their employer will find out about their financial problems. This can lead to a dilemma about whether to tell the employer about a financial problem (or a protected trust deed if you decide to go ahead).
The first thing to make clear is that a trust deed provider will have no reason to inform your employer about your trust deed (assuming you comply with the reasonable requests of your Trustee once it is up and running, and that your employer is not also a creditor of yours).
What if you tell your employer about a trust deed? Should you tell your employer about it? Most employers now understand that financial problems can easily afflict their employees and therefore react sympathetically and supportively. Some banks ask their employees to report financial problems to their line managers who in turn may liaise with the HR department. Many people we have worked with, including persons who work for banks, report a positive experience when they inform a manager at work of their financial difficulties.
Before pressing ahead with notifying your employer there are some checks you can make to satisfy yourself that your job will be safe. Start by checking your employment contract as it may have a clause in it about becoming “insolvent” or in connection to “bankruptcy” or protected trust deeds. If there is a clause about insolvency or trust deeds you may well have an obligation to inform your employer of your intentions of entering a trust deed. Bankruptcy is not the same thing as a trust deed, though both are types of personal insolvency.
We have worked with people in the past who work for banks, have clauses in their contracts connected to trust deeds or insolvency, but who have kept their jobs after going ahead with a trust deed. The key to this seems to be good communication in advance.
If your contract of employment has nothing in it about trust deeds or insolvency procedures, you may still want to make a phone call to the HR department anyway. You may consider making this call anonymously. They should be able to tell you if you need to report your intentions to a manager or any other concerns that the matter might raise.
If you have access to a union representative this may be a better first point of contact. They will more than likely have come across this scenario in the past. If they can tell you how the other similar cases were dealt with by the employer you will have a much better idea where you stand. If other employees have entered into a protected trust deed and kept their job it will set a precedent which may make your position stronger. Very often this will be the case.
Sometimes an employee of a bank will have taken a loan, credit card or bank account with their employer. As a result these debts will also form part of the trust deed as you cannot pick and choose which debts to include in a trust deed. Your Trustee will inform your employer about the trust deed as they will be a creditor, so your employer will receive notification. Such a scenario may only emphasise further a need to communicate with the employer or union representation before signing a Scottish trust deed, especially if the contract of employment highlights this as an area of concern.
Working for a bank need not necessarily mean that you do not have access to debt relief via a Scottish trust deed. Caution in terms of contracts and communication is however a sensible precaution and investment of time in advance of making any final decisions.
Our advice team has assisted many bank workers with their debts. If you’d like to know your best options to improve your finances, please get in touch today.
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