If you enter into a Protected Trust Deed (PTD), there will be fees and/or costs involved.
Your creditors will determine the level of any fees taken, whilst any genuine costs in relation to your PTD may also be charged. For clarity, fees and costs are not in addition to the monthly payments you make. These will be taken out of thos payments as approved by your creditors.
Protected Trust Deed Fees
You will only be charged a fee if your Trust Deed is approved by your creditors and subsequently protected. Once your Trust Deed is Protected, the fees you pay will be:
- An Administration Fee;
- Realisation Fees;
- Costs and Expenses.
*the £40 cost of statutory advertising will be paid from contributions made but will not be refunded in the event your Trust Deed does not become Protected.
Administration Fee
The Administration fee is the cost for assisting you in preparing your PTD proposal and issuing it to your creditors as well as dealing with all of the administration and statutory requirements throughout the term of your PTD. This therefore covers the professional costs of the Insolvency Practitioner and staff involved in arranging your PTD, including:
- Collating information about your circumstances, assets and liabilities, and issuing your proposal to creditors;
- Dealing with initial creditor communications and submitting any subsequent application for Protection of your Trust Deed;
- Dealing with creditor communication and any queries you may have throughout the lifetime of the PTD;
- Carrying out all regulatory and best practice administration – inclusive of annual reporting and Income & Expenditure reviews throughout the lifetime of the PTD.
The administration fee is detailed within your proposal and is subject to approval by your creditors.
Realisation Fees
The Realisation fees are set as a percentage of any sums which are ingathered into the Trust Deed estate. These fees cover the work carried out throughout the duration of the PTD in relation to the setting, maintenance and collection of your contributions together with any assets which you may own. They also intend to cover the distribution of funds to creditors either by way of interim or final dividends.
Whilst the realisation fee is set as a percentage of realisations we would explicitly state that in the event that any undeclared or unexpected assets or windfalls are received throughout the term of your PTD then the total realisation fee drawn will likely be higher than that originally anticipated within your proposal.
Costs and Expenses
There may also be other costs incurred in connection with the running of your PTD.
For instance, your PTD provider may be able to claim back costs of postage and insurance dependent on the fees and costs agreed.
How much you will pay in fees will be clearly set out in your PTD proposal (based on known circumstances at the time), although they must be approved by your creditors and may change prior to the PTD being protected.