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Bankruptcy (Scotland) Act 2016

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Changes over time for: Section 184B

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Bankruptcy (Scotland) Act 2016, Section 184B is up to date with all changes known to be in force on or before 16 May 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

[F1184BProtected trust deed: early discharge in extenuating circumstancesS

(1)This section applies where the trustee considers that, due to extenuating circumstances affecting the debtor—

(a)the debtor can no longer meet their obligations under the trust deed,

(b)there is no reasonable prospect of the debtor being able to resume meeting their obligations under the trust deed, and

(c)the debtor should be discharged from the trust deed before the end of the period for which payments are required under the trust deed.

(2)The trustee must send a notice to each of the creditors of whom the trustee is aware.

(3)A notice under subsection (2) must—

(a)include details of the trustee’s consideration under subsection (1), and

(b)seek agreement from the creditor that the debtor be discharged from the trust deed.

(4)The trustee must apply to AiB for the discharge of the debtor unless subsection (5) applies.

(5)This subsection applies if the trustee has, within 21 days of sending notices under subsection (2), received notification in writing from a majority in number, or no fewer than ⅓ in value, of the creditors that they object to the proposal to discharge the debtor.

(6)An application under subsection (4) must be in the form prescribed for that purpose by the Protected Trust Deeds (Forms) (Scotland) Regulations 2016.

(7)Before applying to AiB for the discharge of the debtor, the trustee must be satisfied that any notice of inhibition under paragraph 3 of schedule 4 has been recalled or has expired.

(8)On receipt of an application under subsection (4), AiB must register it in the register of insolvencies.

(9)Where AiB registers an application under subsection (4)—

(a)the debtor falls to be discharged from all debts and obligations—

(i)in terms of the protected trust deed, or

(ii)for which the debtor was liable as at the date that deed was granted,

(b)the date of discharge is the date on which the application is so registered, and

(c)AiB must without delay notify the trustee of—

(i)the fact of registration, and

(ii)the date of the debtor’s discharge.

(10)The trustee must, within 7 days after receipt of the notification mentioned in subsection (8), notify the debtor and every creditor known to the trustee of the information set out in that notification.

(11)Section 184(6) applies to the notification of the debtor’s discharge under subsection (9) in the same way as it applies to a letter of discharge under section 184.]

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