bw4444 Posted April 2, 2005 Report Share Posted April 2, 2005 Well, I know the simple answer is the creditors. But how does that work? How does a trustee get paid--does the BK court pay them a set fee? Does each creditor sent them money? What is the money trail?What is their relationship with the courts? Does the trustee answer to the BK judge, or is the trustee independent?Is there a good link where this relationship is described?Thanks, bw Link to comment Share on other sites More sharing options...
willingtocope Posted April 2, 2005 Report Share Posted April 2, 2005 Trustees work for the Bankruptcy Court. They're paid a flat fee (like $60 I beleive) out of your filing fee plus a percentage of any money they can recover for distribution among the creditors. And, yes, the trustee does answer to the judge...Lots more details at www.thebankruptcysite.com Link to comment Share on other sites More sharing options...
DocDon Posted April 2, 2005 Report Share Posted April 2, 2005 Best thing to do is read this:It's the Bankruptcy Basics 'manual' put out by the U.S. BK Courthttp://www.mieb.uscourts.gov/generalInfo/bkbasic.pdfHere's the overview of the U.S. Trustee:http://www.usdoj.gov/ust/about_ustp.htm Link to comment Share on other sites More sharing options...
DocDon Posted April 2, 2005 Report Share Posted April 2, 2005 whoops.. posted at the same time, Willing.... Link to comment Share on other sites More sharing options...
willingtocope Posted April 2, 2005 Report Share Posted April 2, 2005 Hey, we're quick....not always good, but quick... Link to comment Share on other sites More sharing options...
DocDon Posted April 2, 2005 Report Share Posted April 2, 2005 Eh, waddya want for free? Link to comment Share on other sites More sharing options...
bw4444 Posted April 2, 2005 Author Report Share Posted April 2, 2005 Thanks for the link DocDon.To quote from the BK Basics brochure:TRUSTEEThe representative of the bankruptcyestate who exercises statutory powers,principally for the benefit of the unsecuredcreditors, under the generalsupervision of the court and the directsupervision of the United States trusteeor Bankruptcy Administrator.So, they are principally looking after the UNSECURED creditors. Link to comment Share on other sites More sharing options...
Jitterbug Posted April 2, 2005 Report Share Posted April 2, 2005 The trustee also gets a cut of payments made under a chapter 13 plan. Link to comment Share on other sites More sharing options...
ladytw Posted April 7, 2005 Report Share Posted April 7, 2005 The trustee works for the benefit of unsecured creditors. They receive a flat fee for each case they handle ($60.00) and can retain a % of assets they recover for unsecured creditors. It is a sliding scale based on the amount recovered. They can also recover their expenses and the cost of their own legal counsel used to recover the assets as an expense of administration. In my area, the Trustees usually hire themselves or partner as counsel, so recover additionally that way. Link to comment Share on other sites More sharing options...
DocDon Posted April 19, 2005 Report Share Posted April 19, 2005 Hi and welcome! Quick question... is there a difference between a Private Trustee and a U.S. Trustee? I can't see a U.S. Trustee reaching into the "goodie bag" for a percentage.... Link to comment Share on other sites More sharing options...
bw4444 Posted April 19, 2005 Author Report Share Posted April 19, 2005 Quick question... is there a difference between a Private Trustee and a U.S. Trustee? I can't see a U.S. Trustee reaching into the "goodie bag" for a percentage.... Yes. I believe a US Trustee contracts with and oversees a number of private trustees. The US Trustee works on salary for the BK court while the private trustee works on contract. Seems I got this info from the US Bankruptcy court website.bw Link to comment Share on other sites More sharing options...
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