Notes for Guidance - Protected Trust Deeds - Bankruptcy (Scotland) Act 2016
- First published
- 30 November 2016
- Last updated
- 15 January 2025 - see all updates
- Topic
- Protected Trust Deeds
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
- First published
- Wednesday, 30 November 2016
- Last updated
- Wednesday, 15 January 2025 - show all updates
- All updates
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changes made to section 2 to reflect the policy changes from 20 January 2025.
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amendment to section 6.8 Increasing the trustee’s fixed fee.
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addition of section 2.5 - Trust deed information leaflet and adequate time, effective from 20 January 2025.
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Updated to take into account The Protected Trust Deeds (Miscellaneous Amendment) (Scotland) Regulations 2024 which came into force on the 1st July 2024. New additions to the guidance includes: Removal of protected status of a trust deed and a review process, Debtor discharge due to extenuating circumstances prior to the 48 month minimum term and Trustee refusal of debtor discharge process, previously part of the PTD Protocol, now in legislation for all trustees to follow
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Update to section 5.1 - Contributions to reflect recent change to Common Financial Statement registration.
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Supporting document published on website
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Published on website
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Amended - PTD Protocol
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Amended
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First published
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