Protected trust deeds: consultation on proposals for legislation changes
We are seeking views on the proposals to help address some concerns identified with the operation of Protected Trust Deeds.
Annex B: Consultation
1. Considering If a PTD Is The Best Option.
Question 1(a): Do you agree that protection should be refused where the full debt in a trust deed could be repaid in 60 months, through the debtor's contributions?
Question 1(b): If you answered no to Q1(a), what do you consider an appropriate timescale?
2. Payment of Debtor's Contribution - Regulation 8
Question 2(a): Do you agree that a trust deed should not be eligible for protection where the value of contributions over its extended period is equal to or greater than the level of debt present when it was granted?
(Protected trust deeds are typically extended to allow payments to be made in lieu of property equity.)
Question 2(b): If you answered no to Q2(a), why not?
3. Minimum Debt Level – Regulation 4
Question 3(a): Do you think that the minimum debt level allowed in a PTD should be increased from £5000?
Question 3(b): If you answered yes to Q3(a) at what level would you set the minimum debt level at?
(please state your preferred level)
Question 3(c): If you answered other to Q3(b) what do you think the minimum debt level should be?
4. Remuneration Payable to Trustee Under Protected Trust Deed – Regulation 23
Question 4(a): Do you agree that category one and two disbursements should be included in the fixed fee?
Question 4(b): If you answered no to Question 4(a), why not?
5. Voting Procedure In PTD Section 170 (2) of The Bankruptcy (Scotland) Act 2016
Question 5(a): Should the voting system for PTDs be restructured where a trust deed would only be protected if out of the creditors who have voted those who own 75 % of the value of debt have actively accepted the terms of the trust deed?
Question 5(b): If you answered no to Question 5(a), what should the terms be?
Question 5(c): Do you believe that AiB should be given general powers to refuse the protection of a trust deed?
Question 5(d): If you answered yes to Question 5(c) should these general powers to refuse the protection of a trust deed only be introduced if the creditor voting procedure does not change?
Question 5(e): If no creditors respond to the trust deed proposal do you agree that the trust deed should become automatically protected?
Please use the box below for any other comments you may have, or anything
you feel is not covered in the consultation questions.
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