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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


8.4 Effect of discharge

On discharge from the PTD, the debtor will be discharged from any outstanding debts and obligations for which they were liable at the date that they granted the trust deed. There are some important exceptions to this rule. 

A PTD does not discharge a debtor from the following kinds of debt:

  • fines, penalties, compensation and forfeiture orders imposed by any court
  • any liability due to fraud
  • student loans (Section 185(2) of the Act refers)
  • money owed to someone who holds a security on their property, such as a mortgage or secured loan, including a security held where the secured creditors have consented in terms of section 166(2)(c) of the 2016 Act
  • secured debt
  • any liability arising after the date on which the trust deed was granted
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