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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

2.11 Time to think

The debtor must be given a copy of the Debt Advice and Information Package which is referred to in section 10(5) of the Debt Arrangement and Attachment (Scotland) Act 2002.

This advises the debtor of all alternative debt relief and debt management options and of the consequences of signing a trust deed and the effects if a trust deed does not become protected.

The trustee and debtor must sign a statement to the effect that the trustee has fulfilled all their duties, as specified in section 167 of 2016 Act.

The debtor should be given adequate time to consider the consequences and alternatives before signing a trust deed.

The insolvency practitioner should be confident that the debtor has understood the advice they have provided.  Insolvency practitioners should bear in mind that the debtor’s anxiety about their immediate financial circumstances may affect their ability to think through the longer term consequences of a trust deed. Allowing the debtor time to think is a good practice that may avoid future complaints.

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