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 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
- 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 . |
Debt Management Plan
IVA's in Scotland 
