The Protected Trust Deeds (Miscellaneous Amendment) (Scotland) Regulations 2024

The Scottish Government laid the Protected Trust Deeds (Miscellaneous Amendment) (Scotland) Regulations 2024 on 3 May 2024. These Regulations aim to bring forward stakeholder-led recommendations to introduce improvements to the current Protected Trust Deed process, ensuring that those who access debt relief through this solution are provided with the necessary support and protection. 

The Economy and Fair Work Committee heard evidence from the Minister for Public Finance in support of the Regulations on Wednesday, 5 June 2024 and recommended that they be passed by Parliament.  

The Regulations, if passed, will come into force on 1 July 2024 and will: 

• make some of the terms contained in a voluntary protocol a statutory requirement. This means where a dividend is payable it will be paid to creditors at month 12 and quarterly thereafter, and a trustee will have to seek the agreement of Accountant in Bankruptcy when refusing to discharge a debtor from a Protected Trust Deed
• allow for the removal of the protected status of a Protected Trust deed where there has been a material error made in the process for the trust deed gaining protected status
• remove any time limitation for a trustee refusing to apply for a debtor’s discharge
• allow early discharge of the debtor in extenuating circumstances
• allow Accountant in Bankruptcy to act as trustee of last resort where a trustee can no longer act in that capacity and a replacement trustee cannot be found
• increase the supervision fee of a trustee under a Protected Trust Deed from £100 to £120 (per annum)
• put explicitly into legislation that anyone applying for a Protected Trust Deed must live or have a business in Scotland.