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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

2.4 Advice to debtors

Section 167(3) of the 2016 Act, requires that the insolvency practitioner must advise the debtor that granting a trust deed may:

  • lead to bankruptcy
  • cause problems with future credit
  • mean that their house may be sold and they might have to move home, unless it is excluded under section 228(1) of the 2016 Act (see section 2.8)
  • require the debtor to relinquish other property which they may own
  • require payment of contributions
  • affect business interests
  • affect employment prospects
  • become public information

The insolvency practitioner and the debtor must sign a joint statement confirming that this advice has been given.

There is no statutory form of statement and insolvency practitioners are free to use their own format to record this information. 

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