They solve a similar problem but are not interchangeable names. A protected trust deed is Scottish; an IVA is a separate arrangement used under other UK insolvency systems.
Short answer
The phrase “Scottish IVA” is often used informally online, but it hides important legal differences. UK government statutory guidance states that IVAs are not available in Scotland and that a protected trust deed offers a similar solution with different benefits, risks and fees. Source: GOV.UK statutory guidance.
Accountant in Bankruptcy describes a protected trust deed as an agreement in which a debtor conveys their estate to an Insolvency Practitioner, who administers it for creditors. GOV.UK describes an IVA as an agreement to pay all or part of debts through regular payments to an Insolvency Practitioner. Source: Accountant in Bankruptcy; source: GOV.UK IVA guide.
A person normally cannot shop between a Scottish trust deed and an IVA based on the lowest quoted payment or shortest advertised term. Residence, domicile, recent moves and the location of business activity can determine which insolvency system is available. Cross-border facts should be checked before a proposal is prepared.
At a glance
| Feature | Protected trust deed | Individual Voluntary Arrangement |
|---|---|---|
| Main jurisdiction | Scotland | Not available in Scotland; England and Wales use the Insolvency Act process, while Northern Ireland has separate insolvency law |
| Practitioner role | A licensed Insolvency Practitioner acts as trustee | A licensed Insolvency Practitioner acts first as nominee and then, if approved, supervisor |
| Creditor decision | Five-week objection process; specified objection thresholds prevent protection | GOV.UK says creditors holding 75% of the debts must agree |
| Usual contribution term | At least 48 months in the usual income-contribution case | Usually five or six years in current Insolvency Service methodology |
| Assets | Covered estate is conveyed to the trustee; equity and valuable assets must be addressed | Assets and their proposed treatment are disclosed in the proposal |
| Fees | Trustee fees and outlays are taken from funds in the trust deed | GOV.UK identifies a set-up fee and handling fees |
| Public register | Scotland's Register of Insolvencies | Individual Insolvency Register for the applicable IVA system |
| Credit report | Normally six years from set-up | Normally six years from approval |
| If it fails | Debt write-off may be lost; creditors may pursue again and bankruptcy is a risk | The arrangement may terminate; creditors may pursue again and bankruptcy is a risk |
Terms vary from case to case. A shorter headline duration does not show the amount repaid, asset obligations, likelihood of completion, fees or the consequences of failure.
Creditor decision
After the trust deed is advertised, creditors have five weeks to respond. Mygov.scot says it cannot become protected if more than half of creditors object or if objecting creditors represent one third or more of the debt. Creditors who do not object are not treated as votes against protection. Source: mygov.scot, How to get a trust deed.
If the thresholds are not reached and the statutory requirements are met, Accountant in Bankruptcy can register the protected status. Included creditors are then normally bound by the deed and restricted from taking separate recovery action while its terms are followed.
For an IVA, the Insolvency Practitioner submits the proposal to creditors. GOV.UK says the arrangement starts if creditors holding 75% of the debts agree and then applies to all creditors, including those who disagreed. Source: GOV.UK, Individual Voluntary Arrangements.
These percentages cannot be compared as if one were simply “easier.” One process measures objections under Scottish rules; the other requires approval under the IVA voting rules. Creditor composition, debt values and the quality of the proposal matter in both.
Payments and fees
AiB trustee guidance says a protected trust deed must normally specify regular contributions for at least 48 months, unless an alternative arrangement such as an asset-only deed is agreed. The level, frequency and number of contributions must be stated and agreed before grant. Source: AiB, section 2.13 Contributions.
The Insolvency Service's methodology for its 2025 IVA statistics says it is usual practice for IVAs to last five or six years. It also lists missed payments, unagreed changes in circumstances and higher undisclosed debts as reasons an IVA may terminate. Source: Insolvency Service IVA methodology, published 2026.
For a trust deed, AiB says trustee fees come from the monthly payments and must be explained before it starts. For an IVA, GOV.UK says there are usually set-up and handling fees. In neither case should a consumer rely only on a quoted monthly amount. Source: AiB key facts.
Property
In a protected trust deed, the debtor conveys the covered estate to the trustee. AiB guidance says the trustee can seek to realise the full value of owned assets, including equity in the family home unless a valid dwelling-house exclusion applies. Source: AiB, section 2.10 Assets.
An IVA is structured through its approved proposal. GOV.UK requires the applicant to give the Insolvency Practitioner details of assets, debts, income and creditors; the proposal and any creditor modifications determine the obligations. Source: GOV.UK IVA guide.
Neither description supports an “automatic home protection” promise. Owners should obtain the valuation, secured balances, equity calculation, proposed release or payment, deadline and failure consequence in writing. See the detailed trust deed home, car and assets guide for the Scottish position.
A Scottish trustee is concerned with the debtor's share rather than a co-owner's share, but may still need to realise that interest. IVA property clauses also need careful review where a home is joint. A co-owner should not rely on a summary prepared only for the person entering the arrangement.
Visibility
A protected trust deed appears in the public Scottish Register of Insolvencies. AiB says details remain for the duration of the arrangement and are removed 12 months after it ends. Source: AiB protected trust deed information document.
An IVA is added to the Individual Insolvency Register. GOV.UK says its entry is removed three months after the IVA ends. Source: GOV.UK IVA guide.
Public-register removal is not the same as credit-file removal. AiB says a protected trust deed stays on the credit report for six years, while Experian says it keeps voluntary-arrangement records for at least six years. Learn more in the trust deed credit-rating guide.
Completion and failure
Successful completion can release a person from qualifying included debts, but neither arrangement guarantees that result on the day it starts.
AiB says that if a debtor stops paying or does not cooperate, the trustee may seek wage deductions, extend the trust deed, refuse discharge or try to make the person bankrupt. Creditors may resume asking for payment and add fees, and money already paid is not returned. Source: AiB key facts.
GOV.UK says an Insolvency Practitioner can cancel an IVA if repayments are not maintained and can make the person bankrupt. The Insolvency Service also records terminations caused by arrears, unagreed changes or higher debts than disclosed. Source: Insolvency Service.
Other routes
Someone in Scotland should normally compare a protected trust deed with the Debt Arrangement Scheme, sequestration, the Minimal Asset Process where eligible, negotiated repayment and full-and-final settlement—not with products that do not apply under Scottish law. Mygov.scot says it is important to speak to a money adviser because another debt solution may be better. Source: mygov.scot.
Someone subject to England and Wales insolvency law may instead compare an IVA with a debt management plan, Debt Relief Order, bankruptcy and direct creditor arrangements. Northern Ireland has its own legislation and advice services. The names may sound similar across the UK, but eligibility and consequences are not safely transferred from one system to another.
Start with a free, approved debt adviser who can review all debts, priority bills, income, assets and jurisdiction. Do not select a formal arrangement from an online savings calculator or an advertised percentage of “debt write-off.”
FAQ
No. A protected trust deed is a Scottish personal insolvency process under Scottish law. An Individual Voluntary Arrangement is a different statutory process and is not available in Scotland. They have a similar broad purpose, but their approval rules, usual duration, administration and public registers differ.
Usually not. IVAs are not available in Scotland, where the comparable formal option is a protected trust deed. Jurisdiction can be more complicated after a recent move or where business and debt connections cross borders, so an approved adviser should establish which law applies before recommending any solution.
Protected trust deed contributions normally run for at least 48 months, while Insolvency Service statistics say it is usual practice for IVAs to last five or six years. Either can last longer if its terms require it, payments are missed, circumstances change or an asset issue still has to be resolved.
No. A Scottish trust deed can be blocked from protection if a majority in number of creditors, or creditors owed at least one third of the debt value, object within the five-week period. GOV.UK says an IVA starts if creditors holding 75% of the debts agree.
Yes. A protected trust deed conveys covered assets to a trustee and must address the debtor's share of home equity unless a valid exclusion applies. An IVA proposal also records assets and can contain property or equity obligations. Never choose between them on a promise that a home is automatically safe; obtain the proposed treatment in writing.
Neither is universally better, and most people do not have a free choice because jurisdiction comes first. Suitability depends on where the person is subject to insolvency law, their debts, reliable disposable income, assets, housing, work, likely changes and the alternatives available there. Use free, regulated debt advice before approaching a provider.
Sources and scope
This comparison is general information. It is not a cross-border jurisdiction opinion or a recommendation of either process.
Sources checked and page reviewed on .