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Individual Involuntary Arrangements Versus Scottish Trust Deeds

When a person begins researching different debt management alternatives, it will not take long to hear about IVAs and Trust Deeds.  However, it may be a bit difficult to understand the differences between these two items.  Comprehending the effectiveness of each solution will help uncover which will be better for individual needs.

To begin, each one is an effective way to deal with debt.  They are also a good way to avoid sequestration. Both will be serious agreements and must be considered with great thought.  It is important to have a discussion with an expert in the field before making a final choice.  Both Trust Deeds and Individual Involuntary Agreements are legal agreements that occur between a person and creditors. In both cases, a person must repay debts through an Insolvency Practitioner who acts as a mediator. The best part is that a person is only held to pay back an affordable amount of money. This allows a person to maintain some sort of normalcy. The leftover debt is written off in the end.  The differences between the two agreements is very important.

Trust Deeds can only be entered into by Scottish residents.  IVAs can be entered into by England or Wales residents.  A person must pay attention to homeland and apply for the correct agreement.  A person must live in the certain location for at least six months as well. 

How Much Must A Person Owe In Order To Qualify?
A person must have unsecured debt in the amount of  £10,000 for Trust Deeds.  For an IVA, a person must have £15,000 of debt. 

How Long Does Each Agreement Last?
Trust Deeds and an IVA will run for different amounts of time.  Trust Deeds usually run for three years.  IVAS commonly last for five years.  This makes residents of Scotland a bit luckier.  These people can become free of debt two years sooner.  Certain circumstances require a person to make payments for longer periods of time, but this is rare.  An adviser will be the perfect person who will be able to convey further information about the payment details.

What Comes Next?
After an IVA has been approved, all assets must be given to the Trustee. This protects a person from legal action from creditors.  With a Trust Deed, a Trustee must complete an application to have the agreement protected.  After the protection has been granted, assets may be kept separate from the agreement.  This may cause friction if a creditor believes that a person is holding back on something that can be useful at paying off debt.  This can lead to a delay in the application process or sequestration proceedings as well.

After a Trust Deed becomes protected, it is advertised in the Edinburgh Gazette.  An IVA is published in the London Gazette.

These two agreements do have similarities:

1.  To qualify for both agreements, a person must owe money to at least two creditors.

2.  A person must make more than £150 of yearly income.

3. Both payment plans are affordable.

4.  A Trust Deed or IVA cannot include secured debt.  Only unsecured debt can be involved with the agreements.

5.  Charges and Interest is frozen in both plans.

6.  At the end of both arrangements, unpaid debt is completely written off.

7.  Both agreements are perfect for a person with a job that prevents bankruptcy or sequestration.

8. A person is allowed to continue a life in public office with either of these agreements.

9.  It is necessary to report any money over £200 that comes from lottery wins, inheritance, or bonuses.

10.  Both of these agreements are a matter of public record.

11.  Both agreements will affect a person's credit and will be marked into the credit report.

Both of these agreements are very effective at managing debt.  They have helped numerous people recover from heavy debt.

Like any financial deal, it is important to understand individual needs and what agreement will be most appropriate.   A person must weight the positives and negatives of each agreement to make the best decision.  An expert in the field may be a good adviser who will be able to recommend the best course of action as well.

 

Do I Qualify For Trust Deed?

Answer a few simple questions on the form above and our system will see if you qualify to write off up to 90% of what you cannot afford to repay.

Do I Qualify?

Totally Debt Free In 4 Years!

A typical Trust Deed arrangement will last for 4 years (unlike an IVA which is 5 years) meaning you will be back on your feet with your finances faster!.

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