Trustee Blog

Riverside Chapter 7 Trustee Steven Speier

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Riverside Bankruptcy Chapter 7 Trustee Steven Speier

Mr. Speier is a Riverside Bankruptcy Trustee, a CPA and a licensed real estate agent. As noted before, Trustee Speier assists other trustees when they need to market houses for sale. Mr. Speier gives opinion of value and also lists the properties for sale.

As housing prices are increasing again, this area of a trustee’s practice is starting to heat up again. If a debtor cannot protect the equity in his home, then a trustee will list the property and use the proceeds to pay the creditors of the estate.

The interest of a Bankruptcy Trustee in selling a home is that a Bankruptcy Trustee like Steven Speier, is allowed a certain percentage of the moneys brought into the estate. So if a Trustee sells a $250,000 house, then the trustee is allowed statutory fees on the sale of the $250,000 as described under 11 U.S.C. 326 (see below). The operative part of the statute is “upon all moneys disbursed or turned over in the case by the trustee to parties in interest.” So even though part of the sale of the house, goes to pay off the secured debt of mortgage, the trustee is allowed to base his/her compensation on the total sales price of the house.

11 USC § 326 – Limitation on compensation of trustee

 

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.

 

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