Trustees will consider whether they are able to make any payments to creditors from the funds they gather in. They will invite claims and proof of the debt from all known creditors. Any payments made may not cover the full amount of the debt and can only be made once other costs, such as the trustee's fees and outlays, are met. The petitioning creditor is treated equally with other creditors although the costs of presenting the petition will be paid before other claims.
Claims must be made on a creditors claim form ( Form 4).
Dividend Payments to Creditors
Money paid to creditors is usually called a dividend and is expressed as the number of pence in the pound paid in respect of each creditor's claim. If a creditor has not submitted a claim form and proof of the debt they will not be included in this process.
When the trustee has collected enough money to pay a dividend, they will write to all creditors telling them how much to expect. Each creditor will be asked to complete a Form of Receipt, giving their bank details, and to return the form to the trustee. When this form is received the dividend payment will be made.
If any of the creditors do not return this form they will not receive any dividend due to them. The trustee will lodge the funds with the Accountant in Bankruptcy in a special bank account called a consignation account.
If you wish to claim any money in the consignation account, you must write to the Accountant in Bankruptcy. A charge is made for dealing with consigned money.