03 September 2013
'New regulations will help improve the transparency of and address the high costs and disappointing returns to creditors associated with Protected Trust Deeds.
These changes will help ensure that only those with more serious debts apply for this insolvency solution and provide transparency about how much of the contributions they will pay will be returned to creditors.
Over recent years, the Scottish Government has had concerns about the performance of PTDs – because more than a third of all PTDs pay no dividend at all to creditors.
Minister for Enterprise, Energy and Tourism, Fergus Ewing said: “These changes will address the two main problems associated with Protected Trust Deeds - rising costs and disappointing returns to creditors. Protected Trust Deeds will not serve as a sustainable debt relief solution for either creditors or debtors if more than half of all of the receipts are spent on costs. I am pleased that we have been able to make these changes and I look forward to them coming into force.”
The Scottish Government has developed these changes by drawing on responses to its consultation exercises and other feedback from stakeholders. The new regulations which improve information provided to creditors will: