Notes for Guidance - Bankruptcy (Scotland) Act 2016 (as amended)

AiB considers that where there are sufficient funds to pay an interim dividend (after making allowance for future contingencies), in respect of each accounting period, a scheme of division should be submitted for approval. A dividend of 5p in £ is considered a reasonable measure of sufficiency for assessing interim distribution requirements.

Prior to paying a dividend to creditors trustees are required to have the Scheme of Division approved by the commissioners, or the Accountant. This must always be submitted with an account which has an end date that is the same as the date of the Scheme of Division.

In arriving at the fund for division, the trustee should provide for contingencies, to allow for the Accountant’s fees for:

• supervising proceedings in the bankruptcy
• audit of the account under review 
• audit of the final account in which the estate is distributed

An estimated breakdown of the fee to close for the final period and closure should accompany the Scheme of Division except where there will be a reversion payable to the debtor. Trustees’ final remuneration claims in such cases will be considered during the audit of the final account, and a detailed SIP9 will be required for review in each case.