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 2.9)
• require the debtor to relinquish other property which they may own
• require payment of contributions
• affect business interests
• affect employment prospects
• become public information

From 20 January 2025, this statement must also confirm that the debtor has been provided a copy of a trust deed information document and 3 days adequate time to consider the advice given.

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.