IVAs (Individual Voluntary Arrangements)

What is an IVA?

Since they were first introduced in 1986, Individual Voluntary Arrangements (IVA’s) have helped thousands of individuals in the UK get out of debt.
IVA’s can help you avoid bankruptcy, keep your home and become free of debt in 5 years.

Should I Consider an IVA?

An IVA is a legal process that applies to individuals with unsecured debts in excess of £15,000, that they are unable to afford.
It is a formal agreement between you and your creditors. It enables you to pay them what you can afford.
An IVA usually lasts for a period of 60 months, after this time, any outstanding debt will be written off using government backed legislation.

What can you do for me?

IVA’s are very effective, they can help you reduce your debt by up to 70%.

With an IVA, you only repay what is affordable to you after taking into consideration your personal circumstances and within 5 years you will be completely debt free (this is subject to acceptance of the proposal by a minimum of 75% of your creditors).

IVA’s put an end to creditor contact and court action, as legally your creditors are not allowed to contact you or pursue a debt once your IVA has been put in place.

IVA’s can help avoid bankruptcy, providing you maintain your monthly payments.

IVA’s guarantee no more interest and charges will be accrued on your debts.

What is a Trust Deed?

A Trust Deed is a legally binding agreement between you and your creditors in which you agree to make a regular contribution from your income and to surrender certain assets to your Trustee, who deals   with your creditors on your behalf and pays them a percentage of the amount outstanding.

Who can sign a trust deed?

Any individual or partnership based or residing in Scotland with either personal or business debts can sign a Trust Deed.

The effects of signing a trust deed?

Upon signing a Trust Deed you are transferring all of your assets (excluding normal household expenses) to your Trustee.
How this affects you will, of course, depend on your personal circumstances.
Assets which are likely to be included in the Trust Deed are, any equity in your home, cars, investments or any other significant assets.
The Trust Deed will be in place for an agreed period of time, usually 3 years, at the end of which the funds available will be paid to your creditors.
Any remaining debts outstanding to your creditors after this period of time will be written off.
From this point onwards, you will not be required to make any further payments to the debts incurred prior to you signing the Trust Deed and you will be completely debt free.

How long does a trust deed Last?

A Trust Deed is usually based on a 3 year term. This is inline with the current period of Sequestration (The Scottish equivalent of Bankruptcy).
However, in certain circumstances, this period can be reduced or extended dependant on the individual circumstances, in order to achieve the best outcome for all parties concerned.