Understanding the IVA criteria and it's affect in Edinburgh

The mechanism in Edinburgh and all over Scotland that is most similar to IVA is called Protected Trust Deed.

If you are struggling with debts that are making your life a living hell, IVA or PTD if you are living in Edinburgh can become a real boon for you to change your life completely. It comes as a great relief for those living under immense pressure from their creditors to pay back the debt. You might even be facing the threat of legal action from your creditors for non-payment of the debt. The more the delay in paying back your debt, your creditors might be adding other finance charges and penalties that add on to your existing debt, making it a real spiral of debt. IVA or PTD is your best solution to put a halt to this situation that seems never-ending.

It is definitely going to cost you a consultation fee if you want to set up an IVA or PTD. It is understandable that when you are already going through so much of financial problems, it is difficult to pay more money but remember that this is what is going to save you from your current situation. There are many such companies out there in Edinburg that can help you sort out your debt problems by setting up a Protected Trust Deed. You have to always deal with a Trustee who is licensed so that your deal has a legal validity which cannot be questioned further in court.

The criteria for eligibility for PTD in Edinburgh are almost the same as IVA and its effect is also the same as IVA. It can actually become like a life saver for you in extreme debt problems. You can pay off the agreed debt amount in the stipulated time, which is 3 years maximum, after which the debts will be written off. You have to agree not to take any further credit. After the practitioner put forward a proposal after going through all your debts, it has to be accepted by at least 75% of the creditors for it to take effect. If the 75% agree, even those that are against it also will have to abide by it. It is a contract that is legally binding between the debtor and the creditors and the creditors cannot back out from their decision once the PTD is in effect. You do not have to worry about the creditors asking for more money or those they were against the proposal and not cooperating with it. It has a legal standing in court and everybody would have to abide by it. Another great advantage is that the repayments are calculated after considering all your other expenditures living in Edinburgh, such as your utility bills, mortgage payments , other daily expenditure etc. so that the monthly payments are affordable for you.

The main effect of PTD in Edinburgh or anywhere in Scotland is its advantage for people’s assets to be protected by excluding them. Also as your home is excluded usually from PTD, even if for any reason, the deed becomes unsuccessful, your home cannot be seized under any legal proceedings that might happen. Like IVA, PTD also does not mandate you to declare your position to your employer as in the case of declaring bankruptcy and it does not have an impact on your employment unlike while declaring bankruptcy.

Some of the facts you need to be aware of PTD in Edinburgh is that if you fail to stick to the terms of the PTD, either the practitioner or one of the creditors could declare it to be invalid that will result in bankruptcy for the debtor. All your monthly expenditures are considered while the repayment plan is made but you will be restricted in some of your activities. There will definitely be no room left for you any leisure. The payments are usually very strict and you are not allowed to fail on any of the payments unless under certain extreme circumstances. If during the period of PTD, your monthly income increases, your repayment also will be increased.

Debtor is supposed to keep records of all his financial transactions and these will be reviewed by the PTD practitioner in Edinburgh. The practitioner submits annual reviews of your financial records to the creditors. Another downside is the credit rating that is expected to go down considerably during the term of the PTD and it will remain so for another year more making it really difficult to get any credit in future.

1. Geoghegans is an Edinburgh–based firm of chartered accountants offering a wide range of services including IVA. They are located in 6 St Colme Street, Edinburgh EH3 6AD and can be contacted over the phone at 0131 225 4681. Visit http://www.geoghegans.co.uk for more details.
Johnston Carmichael is one of Scotland’s largest firm of independent chartered accountants and business advisors with offices in many cities including Edinburgh located at 9-11 Melville Street, Edinburgh, EH3 7PE and can be contacted over phone at 0131 220 1080. You can browse the website http://www.jcca.co.uk/ for more details.

1. Invocas Group plc provide IVA help and can be contacted at Invocas Financial, 2nd Floor Capital House, 2 Festival Square, Edinburgh EH3 9SU or at 0141 342 1600 and visit the website http://www.invocasfinancial.com/ for more details.


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