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How much does the bankruptcy trustee get paid out of settlement?
Wiki User
∙ 14y ago
The amount does vary, but is very regulated by the UST and it is very fair to say that being a trustee is not a very well paying job. The exception of course may be when he is handling a very large case with lots of non-exempt assets to administer. This is the person who administers Chapter 7 cases. His role is to determine whether there are assets to liquidate; to review claims of exemption and the debtor's entitlement to a discharge. He is essentially a representative for the creditors as a group. He is appointed by the United States Trustee, an officer of the Department of Justice, who oversees his performance. He is not himself a government employee. Trustees are frequently lawyers or Accountants. The trustee presides at the first meeting of creditors. He can file objections to claims of exemption or oppose the debtor's discharge, but he doesn't decide those questions. The judge decides disputed questions. More on role of bankruptcy judges. Trustees are paid in part from the filing fee paid to the court at the commencement of the case. Any compensation they receive above that is a fee based on the money they handle as part of the estate. If there are no funds in the estate at the end of the day, the trustee gets only his $60 per case. The Chapter 13 trustee is also a private individual appointed by the UST. He serves the same review function as a Chapter 7 trustee (that is, read the schedules and see if the case complies with the Bankruptcy Code and oppose matters that don't comply with the law.) He also serves as the disbursing agent for payments made by the debtor into the plan. Usually,one Chapter 13 trustee serves all the cases in his/her division or district. The trustee gets a small percentage of the funds that flow through the Chapter 13 case. That percentage is fixed by the UST after review of the Chapter 13 trustee's operating expenses. This trustee is a government employee whose job it is to appoint and oversee the Chapter 7 and Chapter 13 trustees. The UST has standing to appear before the court as an interested party. UST is charged with reviewing Chapter 7 cases for abuse or denial of discharge. Since the '05 amendments, they appear to be more active in this oversight role and more aggressive in trying to force cases into Chapter 13. They also take an oversight role in Chapter 11 cases, especially where there is no creditors committee.
Wiki User
∙ 14y ago
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Who gets paid last in a Chapter 13 Bankruptcy?
In a Chapter 13 Bankruptcy who gets paid last? Creditors, Trustee, their attorney or their lender? ALL ADMINISTRATIVE COSTS - TRUSTEE, ATTORNEY ARE PAID FIRST - BEFORE ANYTHING ELSE. The others sort of depend...a lender is a creditor...if a secured lender...probably before any other.
When can you file bankruptcy after you have paid off a bankruptcy?
When you filed for the bankruptcy, you are also declaring total surrender of the business to the hands of creditor. Although, you can still maintain rights of the company, for the sake of proper decorum, it is advised to allow the bankruptcy trustee to work on the survival of the company.
If you do not owe the IRS will your refund been taken if you file bankruptcy?
It depends on the courts. I had a friend who went through bankruptcy and was owed a refund from the IRS. The trustee for the bankruptcy ordered her to turn over the refund to the courts to be paid out to creditors. So it could happen, but they cannot actually intercept or offset your refund. They will just order you to pay it to the trustee.
If fully paid can you keep your motorcycle if you file personal bankruptcy in Pennsylvania?
In federal bankruptcy, it depends on the value of the motorcycle and whether you can exempt it or pay the trustee the value of the bike. If there is a state bankruptcy procedure in PA, the rules may be a little different.
Filed bankruptcy after a car accident had been paying on the bankruptcy for about 6 months before the car accident now its time to settle where does the settlement go?
Hopefully you listed the asset in your schedules. If not, call your bankruptcy lawyer or trustee ASAP! This could result in all sorts of unhappy consequences. If it is properly listed, the trustee will work with you to split the settlement. Your PI lawyer gets paid first and the rest of the money is shared between the debtor and creditors. In some districts, the debtor gets nothing. Get professional help - you don't make sense even here...you were paying on the BK for six months before the accident, but filed BK after the accident?
If an offer on a property that is not having the mortgage paid because the owner is going brankrupt how does the potential buyer stand legally?
If the owner has filed bankruptcy the property cannot be sold. It is in the legal possession of the trustee in bankruptcy who cannot sell any property without the permission of the court. You can contact the court for the name and contact information of the trustee and direct any questions you may have to the trustee.
If you file chap 7 what will happen to your 2005 truck and 2003 car that are paid for?
It will depend on whether you have a house with equity or not, and on the exemption you can claim in your state or if you can use the federal exemptions, and on how much the vehicles are worth. Any equity amount not exempt will have to be paid to the trustee, or the trustee may be able to take and sell one or both vehicles. Talk to a bankruptcy lawyer in your state.
After discharge on a chapter 7 bankruptcy can the trustee take your truck which is paid for?
If the vehicle was not included as non-exempt property in the BK petition it is considered exempt from sale and seizure.
How long does it take for a trustee to refund your tax refund after filing chapter 7 bankruptcy?
The tax refund goes into the bankruptcy estate. If your chapter 7 filing did not exempt the refund, the money will be used to pay the trustee and to pay your debts pro rata. That is, each creditor gets an amount equal to the percentage the debt is to the total indebtedness. You are not likely to get anything back, but if all the debts are paid off 100 per cent and the trustee is not entitled to any more money, the balance will be paid to you. The trustee should have decided what s/he is going to do. If you have a lawyer, s/he should discuss it with the trustee. You can also talk to the trustee or your case manager. I doubt you will get any of the refund, but make sure to stay on top of the issue and get notices of any trustee motions regarding these funds.
I'm divorced but filing joint bankruptcy with my ex My parents bought me a car it is in my name and paid for. Is it exempt from the bankruptcy?
Ontario law allows a bankrupt to claim an exemption on a vehicle valued at $5650 or less. If the current value is greater then the vehicle vests in the trustee and the bankrupt or a family member can repurchase the trustee's interest. The exemption threshold differs in each jurisdiction but as the vehicle is unencumbered and in in your name it is your asset regardless of who paid for it.
Can you refinance in chapter 13?
Yes. If you have had 12 months of on time payments to the truste and your mortgage has been paid on time,While participating in a Chapter 13 bankruptcy, no major financial transactions are allowed w/o the permisson of the bankruptcy trustee.
When a bankruptcy case is dismissed for missed payments what happens to the money already paid into the plans?
If the court has already confirmed the chapter 13 plan then the money already paid is distributed to the creditors. Basically, since the case was not discharged, you still owe the debt, so you made payments towards the debt while in bankruptcy. If the plan was not yet confirmed by the court, the money is returned to the debtor by the trustee save for a small amount for the trustee's expenses (trustee would ask for this in his motion to dismiss). Money would not be distributed to creditors by the trustee until after the proposed chapter 13 plan is confirmed.
