There are fees involved in an PTD, but these are taken from the normal monthly payments into the PTD. The supervisor of the PTD will be a licenced insolvency practitioner who will negotiate this with the creditors involved before the PTD is agreed.
There are 2 types of fees charged by the insolvency practitioner during a Trust Deed.
The amount of these fees will vary depending on the debtor's circumstances, but will be agreed by both the debtor and the creditors before the Trust Deed is approved.
The Fixed Administration Fee: This fee covers all the work which is done leading up to the proposal being considered by the creditors. This includes the drafting of a proposal which includes the production of a comprehensive statement of affairs, the gathering of all key documentation required and extensive analysis of the documentation to ensure that a Trust Deed is both acceptable to creditors and sustainable for the debtor. This is followed by a meeting with the creditors and consideration of any changes requested by creditors. The Trust Deed will only be approved if both the debtor and the creditors agree on any changes. The fixed administration fee varies depending on how much is paid into the Trust Deed but will be confirmed by the IP.
Trustees Realisation Fee: This fee is paid to the IP and covers all the work which is done after the proposal is approved in supervising the Trust Deed and paying the creditors until the Trust Deed is concluded. These fees are normally capped by creditors at between 15 and 20% of realisations and are drawn monthly from the monthly contributions. The IP will explain this to the debtor in further detail.
Where a customer wants to apply for an PTD, Vincent Bond can gather basic information from them and pass this with the customers consent to a licenced insolvency practitioner. If the PTD is later accepted Vincent Bond will receive a referral fee from the insolvency practitioner.
Important considerations for debtors considering a debt solution: