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This guidance describes the general functions of Accountant in Bankruptcy, interim trustees, trustees and commissioners in relation to their responsibilities regarding bankruptcies which started on or after 30 November 2016.
It is a key function of a trustee to pay out dividends that are due. Where monies are available a trustee should consider making an interim dividend to decrease the amount of statutory interest that may become payable.
The trustee must make reasonable efforts to pay a dividend to a creditor if they are satisfied that the creditor does still exist.
The trustee should invite all creditors to notify their preferred method for payment, to confirm or provide bank details and to encourage payment by secure BACS transfer. Trustees should consider requesting these details at the same time as requesting claims from creditors.
The trustee should circularise each creditor giving notice of any dividend payment to be made to them and specifying the amount due. If details of a creditor’s bank account are already known payment should be made to these details.
The trustee must pay the creditors the dividends allotted to them in the Scheme of Division either on the expiry of the period for appeal under section 134(1) if no objection is made to the trustee’s remuneration. If an appeal is made the sheriff’s decision is final and payment should be made on the final determination of the last such appeal.
The trustee should not consign funds if they have not made reasonable effort to contact and pay a creditor. A trustee should not consign funds solely on the grounds that a creditor has not returned details of their bank account to enable a BACS payment.
12.8.1 Statutory interest
Interest is only payable when a claim is paid at the rate of 100 pence in the pound.
Preferred and ordinary creditors are entitled to claim interest on their claims from the date of bankruptcy to the date of settlement at the contractual rate, if so provided, or at the rate of 8% per annum in accordance with section 26 of The Regulations . Statutory interest may apply even when there is a contractual right to interest on the debt.
12.8.2 Consignment of dividends
This role is undertaken by the finance team on behalf of the Accountant.
Any unclaimed dividend will fall to be consigned with the Accountant under section 135(2) of the Act. To do so, trustees may apply to the head office of either the Bank of Scotland or the Clydesdale Bank in Edinburgh for a consignation receipt which they should lodge with the Accountant.
Alternatively, the trustee can remit the sum to be consigned directly to the Accountant to be lodged in a Royal Bank of Scotland special deposit account. The consignation receipt is available on request.
In either case a fee will be payable to the Accountant for each consignation lodged. This fee will be deducted from the consigned dividend unless otherwise notified.