PART 14Voluntary trust deeds for creditors

Effect of protected status etc.

I1176Dividend payments

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 24 months beginning with the date on which the trust deed is granted, and

b

any subsequent dividend period of 6 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.