This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Fees To Drop For Insolvency Options, Says Debt Solutions Company Www.scottishtrustdeed.co.uk

GLASGOW, Scotland, April 30, 2013 /PRNewswire/ -- The proposed changes, which are to be brought before Scottish Parliament later this year, are part of the drive to reform bankruptcy laws partially due to creditor complaints about how little money is being received by them compared to the insolvency practitioners that administer the trust deeds and sequestrations.

Normally, under the terms of a Trust Deed the client makes a monthly payment to an insolvency practitioner, who deducts their fees and then distributes any funds remaining to creditors as part of the Trust Deed agreement. These fees are agreed at the start of the trust deed process and are based on an hourly rate. The insolvency practitioner must work to the agreed number of hours in order to claim in full. However, if additional work needs to be done beyond what was originally agreed there is scope for the fees to increase. Once the agreed period of the trust deed has elapsed and the debtor has made all the required payments the rest of the debt is formally written off. In many instances this has been up to 70% of the debt.

The new proposals will change all of this. Insolvency Practitioner's will be expected to agree a single initial fee for setting up a trust deed, with their ongoing administration fees covered by a percentage of funds recovered on behalf of the creditors. Any additional work that incurs extra fees will have to be approved by creditors or by the Accountant in Bankruptcy. This will ensure creditors will receive the maximum possible amount of the money they are owed.

However the changes to the fee structure are not the only ones that could insolvency practitioners losing out.

Couples will be able to have joint Protected Trust Deeds, which is in contrast to the current rules which force each individual to have their own, despite their finances being part of a joint pot. This will result in the reduction of the fees charged overall by up to half and allow a couple to manage their financial affairs on an equitable joint basis.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,085.67 +55.46 0.31%
S&P 500 2,089.96 +8.08 0.39%
NASDAQ 4,797.3820 +23.91 0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs