While IVAs (individual voluntary arrangements) continue to hit the headlines, with record numbers in place and more on the way, what are these Trust Deeds being talked about in Scotland.  Are they any different? Can I get a Trust Deed in England?

In reality IVAs and Trust Deeds (also know as a Protected Trust Deed)are very similar (if not identical), but because of different laws in Scotland there are no IVAs.  Where as in England there are IVAs but no trust deed solutions for debt and financial problems.  They are both legally binding agreements with creditors, ensuring that the person (or people involved) pay back an agreed figure to their creditors, in exchange for the balance being written off after a period of normally 5 years.

Some may find it a little surprising that only a majority of creditors need to agree to the legal proposals before going to court.  In reality, the vast number of creditors will agree to any arrangement which ensures that they at least receive settlement of part of the debt, although there are signs that the banks may be getting a little tougher over the subject of IVA and Trust Deed fees.

If for some reason the person is not able to abide by the Trust Deed or IVA then they need to approach their trustees as soon as possible and let them know the reasons why they will struggle.  It is possible at this point to either modify the IVA or Trust Deed, or possibly consider full bankruptcy.  Bankruptcy is the ultimate step, but unfortunately many people have been through this in the UK over the last decade.

As problems continue to build and the economy starts to falter, we will see a marked increase in debt solutions such as these.  Again, the UK economy is set to endure a great deal of pain before the sun starts to shine again.