Date lodged: 3 April 2019
To ask the Scottish Government whether it plans to review the law regarding protected trust deeds and the powers that creditors have for recovery.
Answered by: Jamie Hepburn 23 April 2019
The Scottish Government is currently undertaking a review of Protected Trust Deeds (PTDs) and consulting on proposals which are aimed at addressing some concerns identified with the operation of PTDs. This includes potential measures that promote the granting and protection of a trust deed only where it is the appropriate solution in the circumstances. Additionally, the consultation seeks views on potential reforms to the current voting arrangements to give smaller creditors a greater voice in the process and place more emphasis on active consent to proposals, along with increased transparency and certainty on the administration costs which must be declared to creditors at the outset.