Creditors Guide to Fees – Bankruptcy from 1 November 2011
When an individual becomes bankrupt the costs of the bankruptcy proceedings are paid out of his or her assets. The creditors, who hope to recover some of their debts out of the assets, therefore have a direct interest in the level of costs, and in particular the remuneration of the insolvency practitioner appointed to act as Trustee.
The insolvency legislation recognises this interest by providing mechanisms for creditors to determine the basis of the Trustee’s fees. This guide is intended to help creditors be aware of their rights to approve and monitor fees, explains the basis on which fees are fixed and how creditors can seek information about expenses incurred by the Trustee and challenge those they consider to be excessive.