Riverside Chapter 7 Bankruptcy Trustee
Mr. Whitmore is the longest serving Trustee in the Riverside Division of the Central District of California. Mr. Whitmore is the leader of the small asset case. Mr. Whitmore administers more small asset cases than any other Trustee in the Division. This post will teach you how a bankruptcy trustee earns his or her living from bankruptcy cases.
As you may know, the Chapter 7 Trustees receive $60 for each case assigned to them. This amount has not changed for more than 20 years. At $60 per case, that is not enough to cover the overhead of most Chapter 7 offices. To supplement the $60 fee, Congress enacted a Compensation of Trustee scale at 11 U.S.C. 326 to assist the trustee when they have assets to sell on behalf of the bankruptcy estate.
Mr. Whitmore runs a smaller office in Riverside, California and he often administers the smaller assets from bankruptcy cases filed in the Riverside Division. So even though the amount received by any individual case would be small, the individual cases add up when many are administered. See below for the text of 11 U.S.C. 326 which shows how much a trustee can make for administering an asset.
11 USC § 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.