An 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
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
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
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.