IVA SCOTLAND (Trust Deed or Protected Trust Deed)

An Individual Voluntary Arrangement (IVA) only applies to England, Wales and N. Ireland. Scottish legislation is slightly different and provides for a similar financial instrument called a Protected Trust Deed or a Deed of Trust.

The Trust Deed is a legal process similar to that for an IVA and in order to qualify you must actually be resident in Scotland. The Trust Deed provides a similar remedy to an IVA in that it has been specifically designed to help Scottish consumer debtors restructure all of their unsecured borrowings in order to avoid bankruptcy.

A Trust Deed is designed to last for a minimum fixed period of 48 months whereas an IVA usually lasts for 60 months or more. At the end of the Trust Deed period all remaining debts are completely written off and the debtor is then entirely legally debt free.

Features of Trust Deeds

• A Trust Deed will allow you to avoid sequestration (Scottish Bankruptcy).
• The Trust Deed is dealt with more privately unlike a bankruptcy which is formally published.
• All interest and further charges on the debts will stop.
• All dealings with creditors and other third parties are dealt with by the appointed Insolvency Practitioner.
• Trust Deed restructures usually only lasts for a fixed period of four years at the end of which the debtor is completely debt free.
• In most circumstances the debtor would need to have a minimum of £6,000 unsecured debts and little or no property equity with which to repay the debts.
• The debtor should be in employment and able to afford a minimum £100 per month towards the debts
• A simple Trust Deed can be proposed and become "Protected" in 5 weeks.
• Only an Insolvency Practitioner based in Scotland would ordinarily be able to complete the Trust Deed negotiations.

If you are based in Scotland and would like some further information and advice on how to obtain a Protected Trust Deed then please do not hesitate to call us on 0800 043 5 043 or complete our confidential enquiry form.