22 June 2015

A creditors’ guide to remuneration of trustees’ in bankruptcy - Scotland

When an individual becomes bankrupt the costs of the bankruptcy proceedings are paid out of his or her 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 determine the basis of the trustee’s remuneration. This guide is intended to help creditors to be aware of their rights to approve and monitor remuneration and outlays and explain the basis on which remuneration and outlays are fixed.