While officially speaking there is no such thing as an IVA in Scotland (individual voluntary arrangement) the Scottish equivalent is a Trust Deed. This is due to the fact that financial laws in Scotland are slightly different to those in the rest of the UK but to all intents and purposes a Scottish IVA is in effect a deed of trust. The arrangement is both legally binding and requires the authority of more than 75% of the debts owed between all creditors before it can be put in place.
While it will depend on your particular financial circumstances and the total amount owed, you will only be asked to pay back potentially a fraction of the total amount of your debt. A regular monthly payment direct debit will be set up and if your financial situation changes for the better of for the worse you are formally obliged to let your trustee know. As the UK recession continues to gather pace both IVAs and deeds of trust are becoming more and more popular around the UK.
If for some reason a Scottish deed of trust was broken or the situation arose whereby funds could not be repaid because of a change in financial circumstances, the persons in question may need to consider bankruptcy. Financial advice should always be taken with regard to trust deeds and any other potentially damaging financial circumstances. The longer you leave it the worse it will get and those who bury their head in the sand may well feel the pain at a later date.
