(7th Cir. Aug. 10, 2015)
The Seventh Circuit affirms the bankruptcy court's approval of the Chapter 7 trustee's fee. The principal unsecured creditor objected to the fee because it was based on a distributed amount that included the proceeds of the sale of the debtors' home that paid off secured claims of mortgagees. The creditor claimed the amount of the proceeds should be deducted because the mortgagees did not have to participate in the bankruptcy to enforce their secured claims. The court finds that it was appropriate to include that amount when calculating the maximum fee under 11 U.S.C. § 326(a), and the trustee's fee was under that maximum fee. Opinion below.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
