While Individual Voluntary Arrangements (IVAs) are common in England there is no such legal instrument to write off your debt in Scotland as this is covered by what is known as a protected trust deed. To all intents and purposes the two financial instruments are very similar and allow the debtor in question to enter into an arrangement with their creditors whereby they will pay back a portion of their debt on a monthly basis over a defined period of time.
Debt problems in Scotland have increased dramatically over the last few months as the Scottish economy continues to struggle in line with the rest of the UK. Scottish bankruptcies and Scottish protected trust deed applications are set to move higher in the short to medium term as the full effect of the ongoing recession hits home. However, the equivalent of the English IVA will take significant pressure off those involved and in many cases allow them to rebuild their financial lives again.
Suffering in silence if you have debt troubles in Scotland is not the way forward as in the current economic environment the situation is likely to get worse before it gets better. Debt counselling advice is at hand and all other avenues should be investigated to ensure your life is made simple as possible. You will not be the first to get in debt in Scotland and you will not be the last, but those who take action, whether via protected trust deeds or other alternatives, are the ones that will bounce back when their repayment period is up and economy is flying again.
