Can you get an IVA if you live in Scotland?
No. IVAs are available in England, Wales and Northern Ireland, but not in Scotland. If you live in Scotland, the nearest equivalent is a Protected Trust Deed, and the other main options are the Debt Arrangement Scheme, sequestration and the Minimal Asset Process.
The IVA is a procedure under Part VIII of the Insolvency Act 1986, which covers England and Wales, and Northern Ireland has its own version under the Insolvency (Northern Ireland) Order 1989. Scotland has separate debt law, mainly the Bankruptcy (Scotland) Act 2016 and the Debt Arrangement and Attachment (Scotland) Act 2002, and its own insolvency service, the Accountant in Bankruptcy. So if you live in Scotland, the rules on our IVA pages do not apply to you, and the Scottish options work differently.
Free, impartial money advice is available in Scotland from MoneyHelper, StepChange, Citizens Advice Scotland and National Debtline. See where to get free debt advice.
What can you use in Scotland instead of an IVA?
These are the main statutory options in Scotland. Our overview of debt solutions in Scotland compares them in one place.
| Scottish option | What it does | Nearest in England and Wales |
|---|---|---|
| Protected Trust Deed | Pay what you can afford through a trustee, usually for 4 years, then the rest of the unsecured debt is written off. Minimum debt £5,000 | IVA |
| Debt Arrangement Scheme | Repay your debts in full with interest and charges frozen. No minimum debt, and creditors pay the running costs | Debt management plan, but legally binding |
| Sequestration | Bankruptcy. Fee £150 or nothing, discharge usually after a year, income payments for up to 4 years | Bankruptcy |
| Minimal Asset Process | A simpler bankruptcy for low income and few assets. No fee, debts of no more than £25,000, discharge after 6 months | Debt relief order |
| Moratorium on diligence | 6 months of protection from enforcement while you get advice, once every 12 months | Breathing Space |
Which of these suits you depends on how much you owe, what you can afford, and whether you own a home. A money adviser can go through them with your real figures.
Is a trust deed the same as an IVA?
No, although the two are often confused, and some adverts call a trust deed a “Scottish IVA”. Both involve paying an insolvency practitioner what you can afford for a fixed period, with the rest of your unsecured debt written off if you complete it. But a Protected Trust Deed is a separate legal procedure with different rules:
- It usually lasts 48 months, while protocol IVAs usually run for 60 or 72 months.
- There is a legal minimum debt of £5,000. IVAs have no legal minimum.
- Creditors do not vote to approve it. The deed becomes protected unless a majority of creditors by number, or creditors owed at least a third of the debt, object within 5 weeks.
- It only protects you once the Accountant in Bankruptcy registers it as protected.
- Fees are set by the trustee, with no legal cap, plus statutory fees to the Accountant in Bankruptcy.
Our trust deeds guide explains how it works, what it costs and what happens to your home.
Be wary of any advert that offers Scottish readers an “IVA”, calls a trust deed a government scheme, or promises a set percentage of debt written off. The FCA warns that some debt adverts make misleading write-off claims and describe solutions as “government backed”. A trust deed is a legal agreement under Scottish law, run by private, licensed insolvency practitioners who charge fees.
What if you move between Scotland and the rest of the UK?
Which system you can use depends on your connection to each country, such as where you live, have lived recently or run a business. The tests differ by procedure:
- Protected Trust Deed: since 1 July 2024 you must have been habitually resident in Scotland, or had an established place of business there, at some point in the year before you grant the trust deed.
- Sequestration: you must live in Scotland, or have lived there within the past year.
- Bankruptcy in England and Wales: the law looks at where the centre of your main interests is, or whether you are domiciled in England and Wales or have lived or carried on business there in the last 3 years.
If you have recently moved, you may have more than one option, or fewer than you expect. A debt adviser or insolvency practitioner can check which procedures are open to you before you commit to one.
If you are already in an IVA and move to Scotland
Moving does not in itself end your IVA. It is a binding agreement with your creditors, and your payments and obligations carry on. The standard terms for protocol IVAs require you to keep your supervisor informed of your current address, so tell them before you move, and let them know about any change in your income or costs at the same time.
If you live in Northern Ireland
IVAs are available to you, under Northern Ireland’s own law. See IVAs, bankruptcy and DROs in Northern Ireland.
If you live in Scotland and use our checker, it will ask where you live and point you towards the Scottish options, such as trust deeds and the Debt Arrangement Scheme, rather than an IVA.
Want to know whether an IVA could work for you? Answer a few questions about your debts and income. It takes about 3 minutes, and it is free and confidential.
What to do next
- If creditors are taking action, ask a money adviser about a moratorium, which gives 6 months of protection while you decide.
- Get free money advice, and ask the adviser to compare a trust deed, DAS and sequestration or MAP with your own figures.
- If you live in England, Wales or Northern Ireland, our guide to who qualifies for an IVA sets out the usual criteria.
More guides are in IVAs explained. If you use our checker, we may pass your details to a licensed insolvency practitioner or debt adviser.
Common questions
Is there Breathing Space in Scotland?
No. Scotland has its own moratorium on diligence, which gives 6 months of protection from creditor enforcement and can be used once every 12 months.
Is there a debt relief order in Scotland?
No. The nearest equivalent is the Minimal Asset Process, a low-cost route into bankruptcy for people with debts of no more than £25,000 and very few assets.
Can I get an IVA in Northern Ireland?
Yes. IVAs are available in Northern Ireland under the Insolvency (Northern Ireland) Order 1989, with a separate register kept by the Department for the Economy.
Will your checker work if I live in Scotland?
Yes. It asks where you live, and if you are in Scotland it points you towards the Scottish options, such as trust deeds and the Debt Arrangement Scheme, rather than an IVA.
Related guides
- Debt solutions in Scotland Trust deeds, DAS, sequestration, the Minimal Asset Process and the 6-month moratorium explained.
- What is a Protected Trust Deed in Scotland? How a trust deed works in Scotland: who can get one, protected status, fees, your home and discharge.
- The Debt Arrangement Scheme (DAS) in Scotland How a Debt Payment Programme works, who can apply, the debts it covers, payment breaks and credit.
- Who qualifies for an IVA? Minimum debt, spare income, benefits, homeowners and the situations where an IVA rarely fits.