22 June 2015

A creditors’ guide to remuneration for a trustee acting under a trust deed - Scotland

When a debtor grants a trust deed the costs of the proceedings are paid out of the debtor’s assets in priority to creditors’ claims. The creditors, who hope to recover some of their debts out of the assets, therefore have a direct interest in the level of costs, and in particular the remuneration of the insolvency practitioner appointed to act as trustee. The insolvency legislation recognises this interest by providing mechanisms for creditors to fix the basis of the trustee’s remuneration. This guide is intended to help creditors be aware of their rights to approve and monitor remuneration, and explains the basis on which remuneration is fixed.