Scotland: protected trust deeds
Produced in partnership with James Lloyd of Harper Macleod
Scotland: protected trust deeds

The following Restructuring & Insolvency practice note produced in partnership with James Lloyd of Harper Macleod provides comprehensive and up to date legal information covering:

  • Scotland: protected trust deeds
  • Coronavirus (COVID-19)
  • The nature of a trust deed
  • Protected trust deeds
  • Definition of a trust deed
  • Conditions for protection
  • Conditions as to the debtor
  • Conditions as to the trustee
  • Conditions as to the debtor’s estate
  • Conditions preceding the grant of a trust deed
  • More...

Trust deeds have, for many years, been utilised by debtors as a means of reaching a compromise with their creditors as an alternative to formal sequestration (see Practice Note: Scotland: the process for applying for sequestration). Trust deeds have their roots in common law and, although the law has historically taken a ‘light touch’ approach to them, it has now taken a closer interest in this area. As a result, trust deeds are now much more tightly regulated than ever before.

The purpose of this Practice Note is to consider the general principles of law of trust deeds and the process and effect of obtaining protected status. For a glossary of commonly used Scottish insolvency terms, see Practice Note: Glossary of Scottish insolvency words and expressions.

Coronavirus (COVID-19)

This content is affected by the coronavirus (COVID-19) pandemic. For further details, take a look at our Coronavirus (COVID-19) toolkit. For related news, guidance and other resources to assist practitioners working on restructuring and insolvency matters, see: Coronavirus (COVID-19)—Restructuring & Insolvency—overview and News Analysis: The Coronavirus (Scotland) (No 2) Bill—impact on restructuring and insolvency.

Regulations to extend both Scottish Coronavirus Acts for a further six months have been approved by the Scottish Parliament. This means that the provisions in Part 1 of both Scottish Acts, subject to certain exceptions deemed no longer necessary, will now expire on 31 March 2021.

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