The Protected Trust Deeds (Scotland) Regulations 2008

Discharge of the debtor

19.—(1) Subject to paragraph (2) and regulation 20 below, a debtor will be discharged from all his or her trust deed debts and obligations contracted by that debtor, or for which that debtor was liable at the date that the trust deed was granted, if the following conditions are met–

(a) the trustee under the protected trust deed makes a statement that to the best of the trustee’s knowledge the debtor has met the debtor’s obligations under the trust deed; and

(b) any notice of inhibition under paragraph 2 of Schedule 5 to the Act has been recalled or expired.

(2) A letter of discharge does not discharge the debtor from any liability arising after the date on which the trust deed was granted or any debt which would be excluded from a discharge under section 55(2) of the Act, nor does it affect the rights of secured creditors.

(3) If the conditions in paragraph (1) above are met, the trustee must send–

(a) to the debtor a written letter of discharge in form of Form 5 set out in Schedule 1 to these Regulations from the trust deed;

(b) to the Accountant a copy of the letter referred to in paragraph (a) above for recording in the register of insolvencies.

(4) On receiving the copy of the letter referred to in paragraph (3)(b), the Accountant must forthwith record the debtor’s discharge in the register of insolvencies and the date of registration will be the date of discharge.

(5) If the trustee decides not to grant the debtor’s discharge, the trustee will inform the debtor in writing of the fact and the reasons for so deciding and that the debtor is accordingly not discharged from the debtor’s debts and obligations in terms of the trust deed.