Chapter 7 Riverside Trustee Larry Simons has a duty, as to the other Chapter 7 Bankruptcy Trustees to find assets that are not exempt and to sell them to pay the bankruptcy estate creditors.
Yesterday (December 12, 2013) we talked about the small asset case and the trustee selling assets. When a trustee, like Mr. Simons, he is bound by the statutory compensation set by Congress in the amount of fees he can claim for his part in selling the assets.
Below is a copy of the code section:
§326. Limitation on compensation of trustee
(a) In a case under chapter 7 or 11, the court may allow reasonable compensation under section 330 of this title of the trustee for the trustee’s services, payable after the trustee renders such services, not to exceed 25 percent on the first $5,000 or less, 10 percent on any amount in excess of $5,000 but not in excess of $50,000, 5 percent on any amount in excess of $50,000 but not in excess of $1,000,000, and reasonable compensation not to exceed 3 percent of such moneys in excess of $1,000,000, upon all moneys disbursed or turned over in the case by the trustee to parties in interest, excluding the debtor, but including holders of secured claims.
In a case under chapter 12 or 13 of this title, the court may not allow compensation for services or reimbursement of expenses of the United States trustee or of a standing trustee appointed under section 586(b) of title 28, but may allow reasonable compensation under section 330 of this title of a trustee appointed under section 1202(a) or 1302(a) of this title for the trustee’s services, payable after the trustee renders such services, not to exceed five percent upon all payments under the plan.
In recent years, the US Trustee has asked the Chapter 7 Trustees to administer the smaller asset cases.