beta This is a new service. Your feedback will help us to improve it.

Notes for Guidance - Protected Trust Deeds Bankruptcy (Scotland) Act 2016

This guidance describes the general functions of Accountant in Bankruptcy and trustees in relation to their responsibilities regarding protected trust deeds (PTDs) which were granted on or after 30 November 2016

2.1 Who can grant a trust deed

A trust deed can be granted by a living individual, or by any of the entities that are entitled to apply for their own bankruptcy under Section 6 of the 2016 Act. A trust deed can be granted by a partnership or a limited partnership, but not by a limited company or limited liability partnership.

A trust deed must only be granted for a single estate. A trust deed granted on behalf of a partnership is granted in respect of the estate of that partnership. Insolvent partners must grant separate trust deeds if they wish to include their personal assets and liabilities. A trust deed granted by a partnership does not protect the partners from bankruptcy for their personal debts nor discharge them personally from liability for partnership debts.

A couple cannot grant a joint trust deed. This includes a married couple, civil partnership, or those in a similar relationship even if there is estate held in common with the other person.

A trust deed cannot be granted by a debtor if they:

  • are or have been bankrupt and their trustee has not been discharged, (Section 164(2)(a) of the 2016 Act)
  • are an entity referred to in Section 6(2) of the Act (a company registered under the Companies Act 2006 or an entity in respect of which sequestration is incompetent)
  • have total amount of debts of less than £5,000
Back to top