Chapter 7 bankruptcy trustee compensation is set by statute. In most cases, the trustee receives a percentage of the funds disbursed to secured creditors. This includes amounts paid to first and second mortgage holders, and to third-party escrow accounts. A trustee must be paid at least the minimum amount required by law, as well as the maximum allowed by the bankruptcy statute. Find out: scura.com
Reality of Chapter 7 Bankruptcy Trustee Compensation
Trustees are paid $60 per bankruptcy case, although some cases don’t require them to collect anything. They may also retain a law firm to handle their cases, resulting in fees that exceed the total amount of compensation. However, the trustee’s fee is considered reasonable.
When assets are sold in a bankruptcy case, the trustee earns a commission from the sales. This amount is proportional to the amount of money collected. If there are no assets to sell, there is no commission to pay. The trustee also receives a commission from the sale of nonexempt property and from any lawsuits.
The trustee is the main point of contact for creditors in a bankruptcy case. The trustee will be the person in charge of selling the debtor’s property and recovering money for unsecured creditors. However, it is important to note that the trustee is not a judge. He or she will be a third-party to your case, and this means that the trustee’s compensation is based on the amount of money he or she manages for the estate.