Question about Trustee %

[BNKRPTinNC]

Recently checked 13datacenter and my trustee percentage went from 6% to 7%. Is this normal? Payments haven't changed and % to unsecured has, so far, remained the same so was wondering how the trustee can take more and still make the payments to unsecured at the same %. Nothing has been paid off as I am only 1.5 years into plan. Any thoughts?

[mynameainttracy]

I think we have the same trustee and he gets a whopping 10% from me. I honestly never really paid attention to what percentage he got so I don't know if it has ever changed.

[HHM]

The court and UST office determines the trustee % and it periodically changes. I think you will see most chapter 13 trustees hit 10% which seems to be the inherent cap.

[Pandora]

In our area its standard 10% - however our plan began at 6.7% and just the other day, its dropped down to 5.4%

Glad its not going the other way!

[empowered]

Isn't it problematic to have the trustee making money off of the debtors? Is it supposed to motivate the trustee to look harder for assets? Doesn't it also make them less willing to convert or dismiss? It just seems like the fact that they're drawing funds from debtors sort of muddies the waters, taints the system or whatever. I suppose that considering them as "trustees" means that their monetary compensation is drawn in ways similar to most legal trustees though, eh? Maybe it's just a question of whether the whole concept of a trustee works well in the legal world of bankruptcy.

I'm troubled by some of what I read here.

[HHM]

Isn't it problematic to have the trustee making money off of the debtors? Is it supposed to motivate the trustee to look harder for assets? Doesn't it also make them less willing to convert or dismiss? It just seems like the fact that they're drawing funds from debtors sort of muddies the waters, taints the system or whatever. I suppose that considering them as "trustees" means that their monetary compensation is drawn in ways similar to most legal trustees though, eh? Maybe it's just a question of whether the whole concept of a trustee works well in the legal world of bankruptcy.

I'm troubled by some of what I read here.

It's not terribly problematic, or at least not in the way I think you mean. The chapter 13 and the chapter 7 trustees are different. Also, the U.S. Trustee overseas the system.

The only real counter incentive for chapter 13 trustees is that if they are overly aggressive, the final plan becomes something the debtor has a very low chance of finishing.

[BNKRPTinNC]

I think we have the same trustee and he gets a whopping 10% from me. I honestly never really paid attention to what percentage he got so I don't know if it has ever changed.

We filed in the Middle District as our atty was in Henderson, R. H____n is our trustee. So far it has been smooth sailing with nary anything from the trustee other than periodic statements as to dispersing of funds.