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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

8.3 Examples of AiB directions

The following are examples of Directions which the Accountant considers may be appropriate having reviewed a number of PTDs. This is not an exhaustive examples list and the Accountant may issue different directions as circumstances determine:

A third party agency fee is disallowed, or reduced, as an outlay of the PTD because:

  • the third party agency work is not evidenced, or the fee is deemed excessive for the work evidenced as completed
  • the third party fee was incurred prior to the granting of the trust deed
  • The trustee is directed to realise an asset
  • if they have failed to do so and the sale of the asset will benefit creditors
  • the debtor should or should not be discharged from their obligations of the PTD

The trustee is directed to remove or reduce an outlay as a cost of the PTD if there is inadequate or no evidence to demonstrate that the outlay was a legitimate cost of the PTD.

The trustee is directed to end the PTD early and seek their discharge as trustee, if the PTD is not expected to realise a dividend to creditors. Issue of this direction will be subject to a number of conditions, including assurance that the trustee has received appropriate remuneration for their work and there is minimal risk that future funds will become available that could be paid to creditors. See section 8 regarding discharge of the debtor. 

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