Protected Trust Deeds

There is no such thing as an “IVA Scotland.” There is only Protected Trust Deeds (PTD), which are very similar in many ways.

IVAs are not available in Scotland because of the difference in legislation but a PTD is still a great way to have a legally governed procedure that lets you pay off your debt in a specific period of time.

There are actually a few advantages to a PTD over an IVA. First of all the Protected Trust Deed will allow you to write off up to 90% of your debt but the IVA only allows for upwards of 75%. This can be significant difference in funds.

Another difference is that the required minimum amount of debt in order to apply for a PTD is just £10,000 while an IVA is £15,000. The final major difference between the two is that a PTD can be paid off in 3 years while an IVA can often last 5 years.

The processes are similar in many ways though. First of all, an Insolvency Practitioner must manage and administer the PTD – just like an IVA. You also need to get 75% of your creditors to agree to the PTD proposal. Another similarity is that your creditors are unable to add additional charges or interest during the length of the IVA term.

Just like an IVA, payments are made to the creditors through the Insolvency Practitioner. You also need to meet your payments each month or it may result in bankruptcy and in most cases you will have to release some equity in your property.

The best part is that, at the end of the term, you will be debt free – this is the case with both an IVA and a Protected Trust Deed.