Readers will no doubt be familiar with the previous reported
cases in the litigation between the Royal Bank of Scotland (RBS)
and Mrs Donnelly. In the latest reported decision, the Court of
Session considered whether the discharge of a debtor from a
protected trust deed could be reduced following the discovery of
assets of which the creditor and trustee were unaware prior to the
discharge. The court confirmed that, in principle, reduction is
possible, however it clarified that whether it will, in any
particular case, exercise its discretion to reduce a discharge will
depend upon the individual facts and circumstances.
The Facts
Between 1997 and 2003, Mrs Donnelly obtained loans from RBS,
however she was unable to keep up with repayments, became insolvent
and entered into a protected trust deed. The trustee under the
trust deed granted her discharge on 11 December 2013, with
approximately £25,000 remaining unpaid to RBS, which was Mrs
Donnelly's only creditor. After
