It doesn’t matter whether you are going for a Chapter 7 or Chapter 13 bankruptcy you will be assigned a bankruptcy trustee. As such this professional will need to be paid for their services. The payment rate is different according to the Chapter 7 or Chapter 13 bankruptcy.
Trusting The Trustee
Bankruptcy trustees in a Chapter 13 bankruptcy are often referred to as standing trustees which means they have far more responsibilities that are ongoing for each bankruptcy. The payment that they receive is based on a percentage. In this case the trustee does not have to apply to the Texas bankruptcy court for payment, and based on this the fees for the trustees can vary amongst the different bankruptcies that they are handling under the Chapter 13.
They are restricted by law as to what they can charge. Normally they charge a percentage of the payment plan and the maximum that they are able to receive for compensation is 10% of the payment plan. This has to include any costs that are incurred for the trustee’s office and any professionals that the trustee may have hired.
Another option that is controlled in regards to how much can be charged is the limitation for the standing trustee’s salary. This is based on an executive level compared to a federal government employee and basically is around $145,000. This is a yearly salary and is not based on the number of bankruptcies that the trustee is handling.
The third way that the compensation is controlled is through budget approval. At times the Chapter 13 standing trustee is required to file their operating budgets with the trustee’s office of the US which is part of the Department of Justice. The budgets are then reviewed and approved.