Protected trust deeds: consultation on proposals for legislation changes

Summary of Proposed changes to PTD Legislation

35. As indicated above, the Scottish Government acknowledges fully that a trust deed remains in essence a private and voluntary agreement between a debtor, their trustee and creditors – and that if creditors are content to accept what is being offered in the trust deed in exchange for debt relief, it is not for AiB or any other party to prevent the protections being put in place. That leaves the issues of safeguarding transparency in the process to ensure creditors know what they are being offered and that they are indeed content.

36. However, there is also a wider public interest. It is important that the overall statutory framework delivers the principles mentioned above that - debtors who can pay, should pay; a fair balance is struck between the interests of debtors and creditors; and there is more opportunity for a broader range of creditors to have a say in the process. And above all, we must ensure debtors are in the most appropriate solution.

37 . To help meet these objectives we would be grateful for your feedback on the following proposals:

• introduction of the process where a PTD will not be protected if contributions will pay off the full debt in the life time of the PTD or within 60 months
• if the minimum debt level in a PTD should be increased
• inclusion of category one and category two disbursements within the fixed fee
• change to the creditor voting process
• extending the powers of AiB to refuse protection of a trust deed