Scottish IVA: Protected Trust Deed | Individual Voluntary Arrangment Scottish IVA: Protected Trust Deed | Individual Voluntary Arrangment

Scottish IVA

Scottish IVAAn IVA is only for people living in England, Wales & Northern Ireland so we are often asked “what is the Scottish version of an IVA?”.

 

The closest debt solution to an IVA in Scotland is called a protected trust deed but there are some important difference between the two solutions.

 

The protected trust deed is only available to people who have lived in Scotland for a minimum of 6 months prior to entering the solution.

 

Protected Trust Deed & IVA: Differences

Although people can’t choose between entering a protected trust deed or IVA, the easiest way to understand how each work is to compare them.

 

How Long it Last

 

Protected Trust Deed: The Scottish IVA will last 3 years

 

IVA: An IVA usually last 5 years, unless there is an equity year which extends it to 6

 

Minimum Repayment

 

Protected Trust Deed: A minimum of 10% of the overall debt must be repaid

 

IVA: There is no minimum amount, although if the proposal is too little the creditors may reject it

 

Location

 

Protected Trust Deed: Only people living in Scotland for 6 months prior to entering can enter

 

IVA: Only people in England, Wales & Northern Ireland can enter it

 

Assets

 

Protected Trust Deed: Any assets such as property equity must be realised and any money from the sale paid towards debts before the trust deed can begin

 

IVA: Equity can be paid off with an additional year, making the IVA last 6 years instead of 5

 

Enter A Protected Trust Deed Advice

 

It’s important before anyone considers entering a protected trust deed they get impartial and honest advice from a debt advice organisation.

 

There are a vast range of debt organisations who can give protected trust deed advice but including ourselves at Debt Support Trust.

 

If you think a protected trust deed is the correct debt solution call us on 0800 085 0226 or complete our online debt test.

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