Register of Insolvencies
The register of insolvencies is a statutory register about the insolvency of individuals and businesses in Scotland.
Frequently Asked Questions - Q11
Q11. Trust Deeds or Bankruptcy - What is the difference?
A trust deed is a voluntary agreement with your creditors (the people you owe money to) to repay part of what you owe them. A trust deed transfers your rights to the things that you own, to a trustee who will sell them to pay your creditors part of what you owe. A trust deed will normally include a contribution from your income for a specified period; this is usually 36 months but can vary. An ordinary trust deed is not binding on creditors unless they agree to its terms.
A protected trust deed (PTD) is a special kind of trust deed that is binding on all your creditors. Provided you comply with the terms of your PTD, your creditors usually can take no further action to pursue your debt or to make you bankrupt.
Bankruptcy is awarded either by the Court, if it is a petition by one of your creditors, or by the Accountant in Bankruptcy if you apply for your own bankruptcy. If you are made bankrupt, a trustee will be appointed to administer your bankruptcy, collect contributions from you and sell off assets you have for the benefit of your creditors.
