Glossary Of Debt Management & Financial Terms
Dividends
This is a payment made to an unsecured creditor, in any insolvency proceedings or by the insolvency practitoner. Dividends are usually distributed to creditors, as and when funds are available, on an annual basis. This reflects the insolvency practitioners obligation to balance costs being incurred with the necessity to distribute funds speedilyto creditors. Dividends are paid equally amongst classes of creditors so that all creditos receive so many pence in the pound towards their debt, whatever its size.
