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

Either the trustee, debtor or any creditor can apply to the AiB for a review of their decision to remove the protected status of a trust deed. The application must be submitted in writing, explaining the reasons for the review, supported by any evidence the applicant wishes to be taken into consideration within 14 days of the date of notification of AiB’s decision.

If an application is received, the trust deed will remain protected until the outcome of the review, which must be made within 21 days of receipt of the application.

Once the review decision has been made, AiB must notify, as soon as reasonably practicable, the trustee, debtor or if relevant, creditor who made the application for review.

Once notification of the review decision is received by the trustee, the trustee must then notify all known creditors as soon as reasonably practicable (including any secured creditor mentioned in paragraph (b)(ii) of the trust deed definition, who has agreed not to claim under the trust deed for any of the debt in respect of which the security is held).

If the review decision is to revoke the initial AiB decision to remove the protected status, that initial decision has no effect, and the trust deed will remain protected.

If, however, the review decision is to confirm the initial AiB decision, the trust deed will cease to have protected status 21 days after the date of notification of the review decision, unless an appeal to the Sheriff is made under Section 188 of the Bankruptcy Act.  The sheriff’s decision is final.