PART 14

Voluntary trust deeds for creditors

Conditions for protected status

Payment of debtor's contribution
168
1
The trust deed must state that the debtor is, during the payment period mentioned in subsection (2), to pay any contributions from income for the benefit of creditors (including, where the debtor is an individual, any contribution required by the common financial tool) at regular intervals.
2
The payment period is—
a
a period of 48 months beginning with the date on which the trust deed is granted,
b
such period shorter than 48 months as is determined by the trustee, or
c
such period longer than 48 months as is—
i
determined by the trustee where there has been a period during which the debtor has not paid those contributions, or
ii
agreed between the debtor and the trustee.
3
The trustee may, under subsection (2)(b), determine a shorter payment period only if, in the trustee's opinion, payment of those contributions (from income or otherwise) during that period would allow distribution of the debtor's estate to meet in full the total amount, as at the date on which the debtor grants the trust deed, of the debtor's debts (including interest).
4
Where the debtor is an individual, those contributions must be such as to result, over the payment period, in the payment of a sum less than the total amount, as at the date on which the debtor grants the trust deed, of the debtor's debts (including interest).
5
In calculating those contributions for the purposes of subsections (1) and (4), the whole of the debtor's surplus income over the amount allowed for expenditure in the statement of the debtor's income and expenditure supplied under section 170(1)(d)(ii) must be applied.