Bankruptcy (Scotland) Act 2016

[F1 171A Removal of protected status where material error or irregularity S

(1) If, within 3 months of the trust deed being registered in the register of insolvencies under section 171(2), the trustee becomes aware that any of the conditions set out in sections 164, 165, 166(2) (where it applied) or 167 to 170 were not met at the point of registration due to a material error or irregularity, the trustee must notify AiB.

(2) Where AiB is notified under subsection (1), AiB must decide whether the trust deed should cease to have protected status (see section 163).

(3) If AiB decides under subsection (2) that the trust deed should cease to have protected status AiB must, as soon as reasonably practicable, notify the trustee and the debtor in writing of that decision.

(4) Where the trustee receives a notification under subsection (3) the trustee must, as soon as reasonably practicable, notify every creditor known to the trustee (other than any secured creditor who has, as mentioned in paragraph (b)(ii) of the trust deed definition, agreed not to claim under the trust deed for any of the debt in respect of which the security is held).

(5) A notice under subsection (3) or (4) must state—

(a) the fact that a decision under subsection (2) has been made,

(b) the date on which the decision was made, and

(c) the ground or grounds for the decision.

(6) Where a notice is issued under subsection (3)—

(a) the trust deed ceases to have protected status 14 days after that notice is given (but see section 171B), and

(b) AiB must, as soon as reasonably practicable, remove the entry for the trust deed in the register of insolvencies.]

Textual Amendments

F1 Ss. 171A-171C and cross-heading inserted (1.7.2024) by The Protected Trust Deeds (Miscellaneous Amendment) (Scotland) Regulations 2024 (S.S.I. 2024/198), regs. 1(1), 3(3)