PPI Cheques & Closed Cases
PPI Cheques and Closed Cases
What should an Insolvency Practitioner do if (s)he receives a PPI compensation cheque in relation to a closed Sequestration or Protected Trust Deed?
Clear guidance has been issued by the AiB that former trustees should apply to be reappointed (subject to the payment being large enough to be worth doing it) to enable distribution of these further funds to the creditors (a further distribution to creditors being essential rather than just paying solicitor’s and trustee’s fees).
Protected Trust Deeds
The legal basis for re-opening a closed protected trust deed has been a hot topic with differing legal opinions, differing Sheriff Court decisions - some allowing re-opening and others not.
Recently we have had a decision of both the Outer House and Inner House of the Court of Session in the case of Dooneen Limited & another v David Mond which in summary said Trust Deeds cannot be re-opened once the trustee has declared a final distribution (even if the trustee didn’t know about this asset). We understand that leave to appeal this decision to the Supreme Court has been sought and therefore we may not have a final decision until possibly mid 2017!
Given the Court of Session decisions it is our position that we will not be seeking to re-open any Trust Deeds.
How can 180 Advisory Solutions help?
We can help in Sequestrations only. For a fixed fee, outsource the whole process to us as soon as you become aware of any significant PPI compensation. We’ll do everything, no need for you to rehire staff or add to existing staff workload and you’ll receive trustee’s fees.
We will run the whole process for you, including:
- Application to the AiB or Court seeking your re-appointment;
- Distribution of dividends to creditors;
- Administer the case while it remains open;
- Feeing the case;
- Case closure.
- The solicitor’s fees will be both fixed and contingent upon your re-appointment. Indeed, these costs have normally been allowed as an expense of the estate. 180’s fees will also be fixed and contingent upon your re-appointment.