Scottish and English debt laws are different, so if you are a Scottish resident and have questions on debt, then this is the place to post.

Moderators: TalbotWoods, JaneClack

By Anne77
#35334 when I 1st started to look into ways of dealing with my debt I was told that a Trust Deed is much the same as an english IVA however after reading a lot about both I can't help but thinking that the scottish system with Trust deeds is much fairer and more sensible eg: that it is over in three years as opposed to five and that it can be flexible so you pay less if your circumstances get worse or more if they improve.
It appears the IVA's don't allow you to decrease the amount you pay but do let you increase the amount if your finanical situation improves.
It also seems less lickly that you will be asked for money upfront by and IP up here although maybe that is because I have went through charities for my recomendations.
It's just interesting the diffrences and I feel lucky to be scottish.
By Mel_Odious
#35338 On the other hand doon sarf we can petition for our own bancruptcy whereas Scots can't at present but your law is changing soon.

#35383 Trust Deed law may be changing with our Bankruptcies, dont know exactly how yet-we await info from the Scottish Parliament with bated breath-dont think itll be good though......... :( . So if you are going to do one-do it now......
User avatar
#35389 Hi Anne

I'm not very knowledgeable about the Scottish insolvency system but from the little I know it does seem fairer and less punitive than ours.

There are quite a number of changes on the way in the English (I suppose I should have said English & Welsh) insolvency law.

Expected soon are:

1. a non-court based debt relief scheme for cases known as “no income no assets” (NINA).
2. Two different types of simple IVAs

a) SIVA1 for people owing less than £25,000 where creditors don’t have any voting rights and
b) SIVA2 for people owing more than £25,000 but less than £75,000 where creditors will be able to vote but not modify.

Insolvency Acts are like buses nothing for 16 years and then a whole fleet of them.

Personally I think the government is legislating in the wrong place and that credit controls would make more sense. A simple maxim limit on interest rates at say twice the bank rate would drive irresponsible lenders out of business.