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IVA/Trust Deed 

The benefits of a trust deed/IVA are:

From receipt of information and payment, a Trust Deed/IVA can be completed within a short time. Trust Deeds are in Scotland IVA's England.

• Creditors must stop adding all interest.

In the majority of cases the term of the Trust Deed is 3 years and IVA 5 years, and then the outstanding debt is written off.

• In many cases this could reduce the debt by up to 90%

Creditors (who may otherwise have been difficult) must comply with the arrangement, providing the debt owed to them is not more than one third of the total debt.

The arrangement is legally binding. In other words, once protected/accepted the creditors cannot change their minds.

• The protected Trust Deed/IVA avoids bankruptcy.

Unlike bankruptcy, your employers will not be told. In many cases, this can be a very important issue, where an employer finding out could lead to loss of a job.

A licensed insolvency practitioner, who will take responsibility for liaising with your creditors and distributing your contributions on your behalf, will administer your Trust Deed/IVA.

How does it work?

To enter into a Trust Deed/IVA you need the help of a licensed Insolvency Practitioner/I.P. This is the person who helps you prepare the Trust Deed/IVA and is called the "Trustee".

The Trustee will arrange an appointment with you to go through all details and to sign the Trust Deed, Scotland only, an IVA is usually dealt with by post and phone.

To protect a Trust Deed, the Trustee places a notice in the Edinburgh Gazette. Your creditors then have 5 weeks to respond to the Trustee with their decision. The main users of the Edinburgh Gazette are the major lenders and there is no local newspaper advertising.

In the case of an IVA there will be a creditors meeting and there will be a vote, if a creditor ignores this procedure they are classed as acceptes more than 25% must vote against for it to be rejected

A Protected Trust Deed/IVA ensures that you are legally protected from your creditors and they cannot enforce their debt further.

What will happen afterwards?

If you keep up your payments for the period of the Trust Deed/IVA arrangement then your debts will be discharged in full.

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