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

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 2.11)
• require the debtor to relinquish other property which they may own
• require payment of contributions
• affect business interests
• affect employment prospects
• become public information

Where a trust deed is granted after 20 January 2025, Section 167(3) also requires the insolvency practitioner to:

• provide the debtor with a copy of a debt advice and information package, and a copy of a trust deed information document (see section 2.5).
• give the debtor adequate time to consider the advice and material provided (see section 2.7).

The insolvency practitioner and the debtor must sign a joint statement confirming that this advice and material have been provided and that adequate time was provided to the debtor to consider this advice and material (see section 2.8).

There is no statutory form of statement and insolvency practitioners are free to use their own format to record this information. Alternatively, a form of statement is provided at Annex C.