IVA Alternative for Scotland: Trust Deeds

An IVA allows debtors to make repayments to their unsecured debts for an average period of 60 months then, after the IVA has been completed, any unpaid debt is written off. It provides debtors with an alternative to bankruptcy, but is not available for residents of Scotland.

However, there is an IVA alterative for Scotland: Trust Deeds. A Trust Deed offers similar benefits to an IVA and it also allows you to avoid sequestration (aka bankruptcy).

What are Trust Deeds?

The IVA alternative for Scotland, Trust Deeds, is a legally binding agreement between you and you unsecured creditors. Like an IVA, it allows you to repay an agreed percentage back to your creditors based on what is affordable to you.

Once your proposal has been accepted by a required percentage of your creditors, you Trust Deed will be protected meaning that creditors cannot take any further action against you, as long as you stick to the terms agreed in your Trust Deed proposal.

During the Trust Deed, you must make the set payments for a typical period of 36 months. Once you have made all the required Trust Deed payments, any remaining debt will be written off.

Always seek expert advice about Trust Deeds, as there are other debt solutions available which could be a better match to your financial situation. There are also Trust Deed considerations to think about, for example, the Trust Deed will be recorded on your credit history for six years meaning that you might find it hard to get accepted for credit once the Trust Deed has been completed.

IVA Alternative for Scotland: Trust Deeds

Please get in touch with us for further advice about the IVA alternative for Scotland - Trust Deeds. We will discuss your circumstances, such as your income and expenditure, so that we are in the best position to offer you the right debt solution for you.

Call us free for Trust Deed advice today on 0800 048 1766.