Texas Bankruptcy Trustee Payments

: Chris Lee Law Firm

  Filed under: Filing Bankruptcy

trusteeIn a Chapter 7 Texas bankruptcy, as you may or may not know, a bankruptcy trustee is appointed to oversee the case. This trustee is in charge of impartially collecting all your assets, selling off those which are not secured, and distributing the resulting money to your creditors in the appropriate manner. The bankruptcy trustee is appointed to you; you do not get to choose your trustee. So how does a bankruptcy trustee get paid?

Chapter 7 Trustee Payments

The bankruptcy trustee in your Chapter 7 Texas bankruptcy receives a $60 flat fee which is paid out of your initial filing fees and which is forfeit if your Chapter 7 fees are waived for any reason. After this initial fee, the amount that the Texas bankruptcy trustee receives is completely based on whether or not you have saleable assets in your Chapter 7 case and how much those assets are worth. If you have no non-exempt assets, as in many Chapter 7 cases, then the trustee gets no further compensation. If you do have non-exempt assets, the trustee’s duty is to collect and sell those assets, and he or she receives a percentage of the value as commission.

This commission is based on the value of your property and can be as much as 25% of the proceeds, depending on your Chapter 7 Texas bankruptcy particulars. The trustee receives this fee for his or her efforts in the collection and sale of your property under the Chapter 7 Texas bankruptcy code. There are ways to object if you feel that the amount the trustee is taking is too much, but this is atypical.

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