Protected trust deeds: improving the process consultation

12. Fees and Dividends

12.1 Subject to 12.2, once the initial administration fee is recovered and where sufficient funds have been in-gathered, the trustee must make the first payment to creditors no later than month 18 and at 6 monthly intervals thereafter.

12.2 Where the level of the dividend installment is less than £100, or another amount, agreed by the creditors, the trustee may delay payment until such time as he has recovered sufficient funds to allow a payment of at least £100, or the amount agreed by creditors to be made.

12.3 Remuneration shall be fixed at the outset and the fees payable to the trustee will be on the basis of:

• An initial administration fee to cover the cost of setting up the trust deed; and
• Thereafter regularly monthly fees based on an agreed percentage of contributions and/or asset realisation;

12.4 The remuneration levels must be clearly communicated to the creditors and the debtor.

12.5 Increased remuneration will only be allowed in exceptional circumstances with the express agreement of the majority in value of creditors. The value of creditors is determined by the value of their claims.

12.6 Creditors must make best endeavours to provide a statement of claim (proof of debt) in the form required by the trustee within 120 days of the date of protection.