Section 176 Dividend paymentsI1

(1)

If the funds of the debtor's estate are sufficient, the trustee must pay a dividend out of it to the creditors no later than 6 weeks after the end of—

(a)

a first dividend period of F112 months beginning with the date on which the trust deed is granted, and

(b)

any subsequent dividend period of F23 months beginning with the end of the previous dividend period.

(2)

The funds of the debtor's estate are “sufficient” if, after—

(a)

deduction of the trustee's fees and of any outlays payable under this Part, and

(b)

making allowance for future contingencies,

a dividend may be paid to the creditors amounting to at least 5 pence for each pound sterling of the debtor's debt, as at the date of protection, under the trust deed.

Annotations

Textual amendments

F1: Word in s. 176(1)(a) substituted (1.7.2024) by The Protected Trust Deeds (Miscellaneous Amendment) (Scotland) Regulations 2024 (S.S.I. 2024/198), regs. 1(1), 4(1)(a) (with reg. 4(2))
F2: Word in s. 176(1)(b) substituted (1.7.2024) by The Protected Trust Deeds (Miscellaneous Amendment) (Scotland) Regulations 2024 (S.S.I. 2024/198), regs. 1(1), 4(1)(b) (with reg. 4(2))

Commencement

I1: S. 176 in force at 30.11.2016 by S.S.I. 2016/294, reg. 2