While the term Trust Deeds UK can be used in a variety of different ways, covering a variety of different financial arrangements, it is most commonly used in Scotland as an alternative to an Individual Voluntary Arrangement (IVA) available in England and Wales - sometimes referred to as an IVA Scotland.
In basic terms a Scottish Trust Deed is very similar in make-up to an IVA and is in effect an agreement between an individual and their creditors which will see a defined percentage of their debts paid back over a specific period. A Deed of Trust solicitor will take care of the paperwork, monitor payments and advise creditors of any changes in the individual’s circumstances. As the UK economy continues to struggle, IVAs in England and Wales and Scottish Trust Deeds are becoming more and more popular.
While many people are concerned about the stigma attached to a Trust Deed or an IVA it is worth remembering that these legal alternatives to potential bankruptcy are there for a reason. No creditor is interested in pushing a customer for payments they cannot cover and many would prefer to receive at least a portion of their remaining debt rather than nothing. In many ways it is a win-win situation for both parties because the creditors receive a percentage of the money owed to them and the underlying customer will be released from their financial crisis normally after three or five years - although this figure can be negotiated.
