Notes for Guidance - Bankruptcy (Scotland) Act 2016 (as amended)

When a trustee has been replaced under the Act, the trustee may apply to The Accountant for a certificate of discharge under sections 148(1)(b)(ii) and section 149 of the Act.

14.8.1 Actions of the trustee

The trustee who wishes to apply for their discharge must notify the debtor, all known creditors and the current trustee of the application for discharge and inform them:

• of the effect of the granting of the discharge of the trustee
• any written representations relating to the application may be made to the Accountant’s Trustee Supervision team within 14 days after such notification

14.8.2 Application to the Accountant 

An application for discharge should be made using the template trustee discharge report, following replacement and provide information on the following:

• an update on realised assets and outstanding asset realisations while still in office. When assets have been abandoned reasons should be provided if not already done. It is not expected that the former trustee will have the current position on this
• the date the debtor was discharged. If no debtor discharge report has been submitted, explanation should be provided
• the date the DCO has been completed or brought to an end
• all invoices payable to AiB have been settled
• the trustee’s accounts have all been submitted timeously and no appeal(s) has been lodged
• all account audit observations for any account have been answered
• the date the circular advising the debtor, creditors and replacement trustee of the intention of the trustee to seek discharge was issued
• all Sederunt book documents have been uploaded to BASYS or provided to AiB

If replaced within 3 months the trustee should upload the report to BASYS, along with a copy of the circular to interested parties and raise a notification to advise the trustee supervision team that it has been uploaded. Alternatively, the application may be emailed to the team using AST@aib.gov.uk.

AiB expect that trustees will comply with their GDPR obligations in processing and providing information to AiB to support the application, and only provide information which is relevant to the application.

14.8.3 Actions of the Trustee Supervision team 

Upon the expiry of the 14 day period the Trustee Supervision team will:

• consider the information provided by the trustee and if appropriate request further information and/or evidence to be provided within 21 days of the request
• consider any representations received within the specified timescale

The trustee supervision team will withdraw the application for discharge if:

• the trustee has not completed all the required obligations
• any requested information was not received within the specified timescale

14.8.4 Actions of the Accountant

The Accountant will discharge the trustee if:

• the trustee has completed all the required obligations expected while they were trustee
• representations have not been received to the suggest discharge should not be granted

The Accountant will not discharge the trustee if:

• the trustee has not completed all the required obligations
• representations have been received to the suggest discharge should not be granted

The Trustee Supervision team will notify the decision to:

• the trustee
• the debtor
• any creditor or replacement trustee who has made representation

The decision to grant, or not grant discharge, will not take effect before the end of the period of 14 days beginning with the day the team notifies the decision.

After the expiry of the 14 day period, or following the outcome of a review and/or appeal, the Accountant will, if appropriate:

• make the entry on the Register of Insolvencies
• place a copy of the certificate of discharge in the electronic Sederunt Book

14.8.5 Discharge of trustee - review and appeal 

An application can be made by the trustee, the debtor or any creditor or replacement trustee who made representation to the trustees application for discharge, to the Accountant’s independent review team for a review of a decision made by the Accountant to grant or refuse discharge of the trustee.

An application must be received before the expiry of 14 days from the date the decision was made by the Accountant.

The team must take into consideration any submissions made by any interested party before the expiry of 21 days from the date the application.

The outcome of the review to confirm, revoke or amend the decision, determination or requirement must be made before the expiry of 28 days from the date the application for review was made.

Any person entitled to request a review may appeal the review decision to the sheriff before the expiry of 14 days from the date the review decision, determination or requirement was made.

The sheriff’s decision is final.

14.8.6 Effect of discharge of the trustee

The discharge will have the following effect:

• discharge the trustee from all liability (other than any liability arising from fraud) to the debtor and the creditors
• in respect of any act or omission in exercising their function under the Act