Harrington Brooks - IVA - IVA’s in Scotland
 

IVA's in Scotland

In Scotland Individual Voluntary Arrangements are referred to as Protected Trust Deeds.

This is very similar to the IVA in the rest of the UK, as it is a legally governed procedure which allows you to repay a portion of your debt over a specified period. You would make monthly repayments that are based on an affordability test and any remaining debt would be written off after this period.

How does a Protected Trust deed work?

Your first step is to draw up a full list of creditors, how much is owed to each one, and what you can realistically afford to pay each month.

The trustee would then compile a proposal to the lenders and they would administer the protected trust deed. A protected trust deed deters lenders from taking legal action against you and it would ensure that the interest on the debt is frozen.

You may want to consider the following:

  • You will only be granted a protected trust deed if two thirds or more of your creditors agree to it.
  • Your creditors may have the right to receive any equity in your home, though there are ways of preventing that.
  • You would not be allowed to enter into any other debt contract
  • Any unexpected windfalls or changes in your financial circumstances should be reported to the trustee
  • You would have to co-operate with the trustee and pay the agreed monthly contribution

There are many advantages of a Protected Trust deed, some of which are the following:

  • Your trustee would correspond with the creditors
  • It is a flexible option that costs less than sequestration
  • Creditors could find it difficult to add further interest, charges, or take further action against you
  • Certain public offices may still be available to you, and directors and self-employed people may be able to carry on as before
  • The duration is three years, after which any remaining debt is written off
  • No information on Protected Trust deeds are published
To find out more about Protected Trust Deeds and ways in which Harrington Brooks can assist you with your debt issues call one of our consultants today on 0808 131 0040.


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