i have read about an IVA in England, what is
a Trust Deed in Scotland?

In England, Wales and Northern Ireland the IVA or Individual Voluntary Arrangement is a very useful debt management tool which helps many people through difficult personal debt problems. An IVA, however, does not apply in Scotland. In Scotland there is the Protected Trust Deed which does essentially the same job although it does have some differences.

The main difference between a 'Trust Deed' and an 'IVA' is the length of time one stays in force. An IVA lasts for 5 years whilst a Trust Deed lasts for just 3 years.

Most of the other aspects of the Trust Deed are the same as an IVA.

Interest and Charges are stopped with an IVA and Trust Deed.

You only make one monthly repayment with a Trust Deed and IVA.

Creditors letters and telephone calls all stop with an IVA and Protected Trust Deed.

Court proceedings and bankruptcy can be prevented with an IVA or Trust Deed.

Once you finish the term of the agreement you will be deemed debt free.

Because a Trust Deed is a legally binding agreement it may have consequences if you fail to adhere to it's terms set out in the agreement. If a Trust Deed is either not suitable or is not possible, then in Scotland you may apply for the Scottish equivalent of Bankruptcy known as Sequestration or enter into a Debt Management Plan if suitable.

For more detailed information, call our FREE debt helpline on 0800 018 6868.