Limit on Chapter 13 Trustee's Fees
Posted: Sun Nov 08, 2015 11:03 pm
This section is a bit confusing but here is how it works:
Section 326(b) governs payment of Chapter 13 Trustees. It says that if
there is a standing trustee, that trustee is compensated per 28 USC 586(b)
and cannot be otherwise compensated by the Estate. Now, if there is no
standing trustee, then the chapter 13 trustee is subject to reasonableness
standards of section 330 but limited to 5% of all payments under the plan.
586(e) is where the 10% fee comes from and only applies to standing
Trustees.
Sincerely,
*Michael Avanesian, Esq. *
Avanesian Law Firm
101 N. Brand Blvd. PH 1920
Glendale, CA 91203
Tel: 818.276.2477 | Fax: 818.208.4550
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On Sun, Nov 8, 2015 at 3:11 PM, Link Schrader lschrader@schrader-law.com
[cdcbaa] wrote:
>
>
> The CD chapter 13 plan estimates Chapter 13 Trustee's Fee at 11% "unless
> advised otherwise". However Section 326(b) appears to limit the chapter 13
> trustee's fee to no greater than 5% of all payment under the plan. I've
> always figured the 11% was just to keep the bases covered with a built in
> cushion.
>
> I recently filed a MoMod to a 100% plan where the trustee's fees were
> estimated at 3.33% (they had been 3.31% so far in the case) and the trustee
> issued comments requesting an increase to 10% of the final payment, or 8.6%
> of all payments made under the plan. There were no extraordinary services
> provided by the trustee (not to see her trustee work was not stellar), so
> can anyone tell me if there are times when the trustee fee can exceed 5%?
> What am I missing?
>
> Thank you,
>
> Link W. Schrader, Attorney
> Law Office of Link W. Schrader
> P.O. Box 412914, Kansas City, Missouri 64141
> Missouri/Kansas: (816) 841-2642 (No Texts); California: (310) 413-6924
> (Phone or Texts )
> Fax: (310) 878-4158; www.schrader-law.com
>
> Admitted to practice law in all courts in California and Missouri, and in
> the federal courts in Kansas.
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> for your cooperation.
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>
>
This section is a bit confusing but here is how it works:Section 326(b) governs payment of Chapter 13 Trustees. It says that if there is a standing trustee, that trustee is compensated per 28 USC 586(b) and cannot be otherwise compensated by the Estate. Now, if there is no standing trustee, then the chapter 13 trustee is subject to reasonableness standards of section 330 but limited to 5% of all payments under the plan.586(e) is where the 10% fee comes from and only applies to standing Trustees.div class"gmail_signature">Sincerely,Michael Avanesian, Esq.Avanesian Law Firm101 N. Brand Blvd. PH 1920Glendale, CA 91203Tel: 818.276.2477 | Fax:818.208.4550Confidentiality:This electronic transmission and its contents are legally privileged and confidential information and intended solely for the use of the addressee. If the reader of this message is not the intended recipient, you are hereby notified that any dissemination, distribution, copying or other use of this message and its contents is strictly prohibited. If you have received this transmission in error, please reply to us immediately and delete this message from your directory.IRS Circular 230 Disclosure:To ensure compliance with requirements imposed by the IRS, please be advised that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used or relied upon, and cannot be used or relied upon, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.
On Sun, Nov 8, 2015 at 3:11 PM, Link Schrader lschrader@schrader-law.com [cdcbaa] <cdcbaa@yahoogroups.com> wrote:
The CD chapter 13 plan estimates Chapter 13 Trustee's Fee at 11% "unless advised otherwise". However Section 326(b) appears to limit the chapter 13 trustee's fee to no greater than 5% of all payment under the plan. I've always figured the 11% was just to keep the bases covered with a built in cushion.I recently filed a MoMod to a 100% plan where the trustee's fees were estimated at 3.33% (they had been 3.31% so far in the case) and the trustee issued comments requesting an increase to 10% of the final payment, or 8.6% of all payments made under the plan. There were no extraordinary services provided by the trustee (not to see her trustee work was not stellar), so can anyone tell me if there are times when the trustee fee can exceed 5%? What am I missing?Thank you,>Link W. Schrader, Attorney
Law Office of
Link W. Schrader
P.O. Box 412914,
Kansas City, Missouri 64141
Missouri/Kansas: (816)
841-2642 (No Texts);California: (310) 413-6924 (Phone or Texts )Fax: (310)
878-4158;
The post was migrated from Yahoo.