Notes for Guidance - Protected Trust Deeds - Bankruptcy (Scotland) Act 2016

In the determination of the amount of contribution the trustee may seek from a debtor, the trustee should assess the debtor’s expenditure against the trigger figures for expenditure as published as part of the Common Financial Statement.

A trustee can access the Common Financial Statement through the Common Financial Tool or by registering with AiB to obtain authorisation.  Further information can be found on the Common Financial Statement Section.

Further to section 2.10 a trust deed will not get protected status if the expected total amount of debtor’s contributions over the payment period (48 months – calculated using 48 monthly payments or the equivalent thereof) will be equal to, or greater than, the total amount of the debtor’s ordinary debts (including interest to date of granting the trust deed). Section 168(4) of the 2016 Act refers. In calculating the amount of the debtor’s contribution from income, to determine if the total contributions over the payment period will be equal to, or greater than, the total amount of the debtor’s ordinary debts (including interest to date of granting the trust deed), the trustee must use the whole of the debtor’s surplus income in the Trustee

Whilst no contribution can be paid from a debtor’s tax credits, Universal Credit, or other Social Security benefits, including allowances and payments specified in the Social Security (Scotland) Act 2018 and the Scottish Child Payment Regulations, the value of benefits and credits must be taken into consideration when determining if the debtor can afford to pay a contribution out of any other income.

The trustee should review the debtor’s income and expenditure regularly, at least annually. If the debtor’s income increases, or expenditure decreases, the level of contribution should be increased proportionately. If the debtor’s circumstances change, it may be necessary to vary the amount of any contribution or the period over which contributions are payable.