Being in debt can be a stressful time without the added pressure of other people knowing that you owe money. Knowing where details of your debt solution will be published and who can view this information can help put your mind at ease.
The truth is, while your insolvency will be visible on a public register, it’s extremely unlikely that anyone you know will ever accidentally stumble upon your information on there.
What is the Register of Insolvencies?
In Scotland, the Register of Insolvencies (RoI) is a public register that contains information about two Scotland-only debt solutions: Trust Deeds and sequestration. It also includes information about individuals with moratoriums, which is a fixed period of legal protection from your creditors.
The Register of Insolvencies includes information about individuals and businesses and can be used to check if a company has entered receivership or liquidation. It can be searched by anyone for free, but it is typically only used by lenders when you apply for credit.
The Accountant in Bankruptcy (AiB), which is the government agency responsible for administering and managing personal bankruptcy and business insolvency, oversees the Register of Insolvencies to ensure all entries are accurate and up to date. The AiB is essentially Scotland’s version of the Insolvency Service in England and Wales.
However, because information is provided by third parties, the AiB doesn’t accept responsibility for any errors or omissions as a result of negligence or otherwise.
There is another register in Scotland, known as the Debt Arrangement Scheme Register, for individuals in the Debt Arrangement Schemes. This is also overseen by the AiB.
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Is the Individual Insolvency Register the same as the Register of Insolvencies?
Despite similar names, the Individual Insolvency Register is not simply another name for the Register of Insolvencies.
The Individual Insolvency Register is essentially the equivalent of the Register of Insolvencies in England and Wales. It contains information about a number of insolvency cases, including bankruptcies, Debt Relief Orders (DROs), and Individual Voluntary Arrangements (IVAs).
In Northern Ireland, these debt solutions are listed on a register called the Individual Voluntary Arrangement Register.
What information is included on the Register of Insolvencies?
The Register of Insolvencies includes a number of details about a person who has been declared insolvent, including:
- Their name (or trading name if sole trader)
- Their address
- Their date of birth
- The date the debt solution started
- The name of the Trustee or Insolvency Practitioner (there is no Official Receiver in Scotland)
- The discharge date
This level of information might seem excessive, but the more details that are listed, the less chance there is of an entry being misinterpreted. For example, if you have a common surname, your entry can be verified by another detail, such as your address or date of birth.
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How long will details of my Trust Deed stay on the Register of Insolvencies?
If you have a Trust Deed, it will be removed from the Register of Insolvencies 12 months after your Trustee has been discharged. This means that, if your Trust Deed lasts the standard four years, it will likely be visible on the register for five years from the date it was approved.
However, because a Trust Deed can be extended to five years, it could be visible on the register for six years in total. During this time, you will find it difficult to be approved for most types of credit, even if you have settled your debts.
It’s important to note that you won’t receive any notification of your entry being removed from the Register of Insolvencies. Instead, you should check the register after the date it’s supposed to be removed to ensure your details have been updated accordingly.
Who can access the Register of Insolvencies?
Knowing that details of your debt are visible on a public register can understandably be daunting. However, while anyone can, in theory, view this information, it is usually only accessed by people and organisations with a valid reason to check your financial history.
It’s important to note that information contained on the Register of Insolvencies won’t show up if someone were to simply search for your name online. For someone to access your individual entry on the register, they must know the specific details of your Trust Deed or sequestration.
For example, if a family, friend, or colleague is unaware of your financial situation or that you’re even in debt, they won’t be able to find out by searching for your name online.
Here is a brief summary of who can access the Register of Insolvencies and the reasons why they might need to view your entry:
Lenders
Most lenders will access the register when determining whether or not you should have access to further credit.
This is an important step in the approval process because, if your details are found on the register, you might be seen as a bigger risk. This could negatively affect your chances of obtaining a loan, mortgage, bank account, or phone contract.
Credit reference agencies
The main credit reference agencies (Experian TransUnion, and Equifax) often carry out regular searches of the register to ensure your credit rating is accurate.
Having an entry on the register will automatically lower your credit score for a number of years, but it will gradually improve as it ages and can be rebuilt over time with responsible financial behaviour.
Employers
Some employers might check the register to ensure you are legally allowed to work in a particular field or role.
However, this is usually only the case for jobs within the legal or financial industries or the police. Check your employment contract to find out whether being on the register could potentially affect your employment.
Landlords
Landlords must be able to guarantee their tenants can pay rent in full and on time. If a landlord discovers that you’ve had trouble making payments in the past, they may be less likely to agree to let you rent a property.
Alternatively, they may be happy to let you rent a property but ask for an advance payment or request that you assign a guarantor for extra security.
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How can I improve my credit score after a Trust Deed or sequestration?
Having a Trust Deed or sequestration will lower your credit score and make it difficult to be approved for further credit because it indicates that you have a history of missing payments and might find it difficult to afford another agreement.
However, it’s important you take steps to continue to improve your credit score after a debt solution. This can be done by:
Keeping an eye on your credit report
Lenders rely on the information contained in your credit report when deciding whether to approve you for credit. However, while efforts are made to ensure the information provided is accurate and up to date, occasionally errors occur.
Therefore, checking your credit report on a regular basis can ensure you’re made aware of any mistakes that may be unfairly damaging your credit score. If you notice anything that doesn’t look right, simply contact the relevant credit reference agency with proof of the mistake and request that your credit file be updated as soon as possible.
Register on the electoral roll
Lenders usually check the electoral roll to confirm you have a permanent address.
By registering to vote at your current address, lenders can confirm your address when you apply for credit and rule out identity fraud.
Never miss a payment
It can be easier said than done, but making sure you never miss another payment can help you maintain your credit score.
Even late payments can stay on your credit file for up to six years, which can make it difficult to make any major financial decisions during that time, including buying a home.
Get a credit card
Getting a credit card can be a good way of proving to lenders that you are capable of making payments in full and on time.
However, if irresponsible spending on credit cards is what led to you applying for a Trust Deed in the first place, you must exercise caution and only ever use credit cards for expenses you know you will be able to repay.
Request a completion certificate
There are some instances in which you might be asked to prove you have stuck to the terms of your agreement.
If you didn’t receive a completion certificate when your Trust Deed came to an end, requesting one can prove you made the necessary payments and abided by the terms and conditions for the duration of the arrangement. This can speed up the process of getting credit down the line.
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Conclusion
The Register of Insolvencies is a public register that lists all insolvent individuals and businesses in Scotland. It can be accessed by anyone, but it is usually only viewed by lenders and some employers and landlords.
Your details will be removed from the register 12 months after your trustee is discharged from your arrangement. In most cases, this is five years after your agreement begins.
If you’re living with unaffordable debt, don’t suffer in silence. Always reach out for expert advice on how to deal with your debt before it’s too late.
