The Protected Trust Deeds (Miscellaneous Amendment) (Scotland) Regulations 2024 (link) amends the Bankruptcy (Scotland) Act 2016 (link) with regard to trust deeds.

The main change is that it adds a requirement for someone applying for a protected trust deed to have a "sufficient connection" to Scotland. This means they must have either lived in Scotland or had a business there in the year before applying.

Other changes include -

• The Accountant in Bankruptcy (‘AiB’) may decide to remove protected status where there has been a material error or irregularity in the process that led to a trust deed gaining protected status. AiB’s decision can be reviewed.

• Adjustment of time periods – first dividend period is reduced from 24 months to 12 months, and subsequent dividend periods are three months, rather than six months. Applies to trust deeds granted on or after 1 July 2024.

• The trustee must seek the AiB’s agreement and permission where he or she intends to refuse to discharge the debtor.

• A process for early discharge where extenuating circumstances affecting the debtor mean that the debtor is no longer able to meet their obligations under the trust deed. The trustee is required to seek the agreement of the creditors to the proposed discharge.

• Section 186A allows AiB to take over as the trustee in a protected trust deed where the existing trustee is unable to continue to act and where no replacement trustee can be found.

• Section 186B provides that where AiB becomes the trustee, Part 14 of the Bankruptcy Act 2016 will apply to AiB as it applies to any other trustee, subject to the modifications specified.

• AiB’s annual supervision fee in respect of protected trust deeds increases from £100 to £120. This change will apply in respect of existing as well as new trust deeds.