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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

5.3 Effects of removal of protection

A trust deed whereby the protection was removed following a decision by AiB under Section 171A does not:

  • invalidate any actions which were carried out by the trustee between the time of protection and the date a decision to remove the protection was made.
  • prevent the trust deed from re-attaining protected status again providing the conditions in Sections 164 – 170 are met.
  • prevent the debtor from seeking an alternative debt solution or applying for a moratorium.

If the trust deed is re-presented for protection, as a result of an error or irregularity, the cost of re-presenting the trust deed may not be paid out of funds held in the trust deed estate without a direction being sought from a sheriff in accordance with Section 189 of the 2016 Act.

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