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Scotland

IVAs and Scotland: Trust Deeds & the Debt Arrangement Scheme

IVAs do not apply in Scotland. Scotland has its own debt solutions instead, mainly Protected Trust Deeds and the Debt Arrangement Scheme, with sequestration as the Scottish form of bankruptcy.

Can I Get an IVA in Scotland?

No. Individual Voluntary Arrangements are a solution for England, Wales and Northern Ireland only. Scotland has a separate insolvency system with its own equivalents, overseen by the Accountant in Bankruptcy (AiB). The good news is that the Scottish options achieve similar things, they are simply called something different and have their own rules.

The Scottish Equivalent of an IVA

A Protected Trust Deed is the closest equivalent to an IVA. You agree to pay what you can afford to a trustee for a set period, usually four years, after which the remaining debt covered by the deed is written off. It is a formal, binding arrangement, much like an IVA. See our Protected Trust Deed guide for detail.

The Debt Arrangement Scheme (DAS)

The Debt Arrangement Scheme is a government-run scheme that lets you repay your debts in full over an extended period through a Debt Payment Programme, with interest and charges frozen and protection from creditor action. It is closer to a formal debt management plan than to insolvency, because you repay everything you owe. Our DAS guide explains how it works.

Sequestration

Sequestration is the Scottish term for bankruptcy. It writes off most debts and is administered by the Accountant in Bankruptcy. As with bankruptcy elsewhere, it has serious consequences for your assets and credit, and should be considered only with proper advice.

Free Debt Advice in Scotland

For free, impartial advice in Scotland, contact:

  • Money Advice Scotland;
  • StepChange, which covers Scotland;
  • Citizens Advice Scotland;
  • National Debtline, which covers Scotland, on 0808 808 4000;
  • MoneyHelper, on 0800 138 7777.

Get Free, Impartial Advice First

You never have to pay anyone to find out where you stand. These services are free, independent and will go through every option with you.

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