Can I object to the re-opening of a Trust Deed?

The re-opening of Trust Deeds has become a contentious issue in Scotland. Debtors who assumed that, having been discharged from their Trust Deed, no further action would be taken in relation to their insolvency, are now facing the prospect of being on the Register of Insolvencies once again, and losing out on incoming funds.

It’s becoming increasingly common for Trustees to attempt to re-open Scottish Trust Deeds, particularly to collect in funds from PPI claims. If you are in this situation, there may be little you can do to prevent your Trust Deed being re-opened.

This is a very complex area of law,  and the question has been asked, does a Trust Deed ever actually close? A lack of clarity in this area adds to the uncertainty.

Court hearings

An increasing number of Scottish residents are appealing against the re-opening of their Trust Deed in court, some representing themselves. There are a number of reasons why you might want to object to your Trustee’s actions, apart from the obvious issue of benefiting from the refunded PPI money.

The practical problems of being on the Register of Insolvencies could potentially affect your ability to obtain credit or other types of borrowing, and make it difficult to ‘move on’ with your life.