The Protected Trust Deeds (Miscellaneous Amendment) (Scotland) Regulations 2024 introduced changes to how PTDs can be ended earlier than 48 months. It came into effect on 1 July 2024.
Where a trustee believes the following circumstances exist, they can apply to have the trust deed ended early, and the client discharged of their debts before the 48 months are completed. The circumstances are:
1s184B B(S)A 2016•the client can no longer meet their obligations under the trust deed; and
•there is no reasonable prospect of them being able to resume meeting their obligations under the trust deed in the foreseeable future.
The trustee must first seek the agreement of the creditors.
Creditors can object and if a majority in number or a third in value object, the trust deed cannot be ended early.
If this is the case, the trustee can apply to the AiB for a review.
The AiB will consider the application and determine whether it is satisfied that, taking into account all the circumstances, it is fair and reasonable for the debtor to be discharged from the trust deed.
2s184C B(S)A 2016If they refuse, an appeal under section 188 of the Act is possible.