What are normal fees for a bankruptcy trustee on sale of property? How? 5 Answers as of August 12, 2015

How is it determined if a fee buyer must pay to a trustee? Is negotiation on fees acceptable? Is a $10,000 fee reasonable on a $229,000 property?

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Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
A BR trustee is paid a varying percentage on property which s/he administers. It's unusual for a trustee to be administering secured property. It is set as no more than: 25% on the first $5,000 10% from $5001 to 50,000 5% from 50,001 to $1,000,000 over $1,000,000-reasonable compensation not to exceed 3%. Almost anything lawful is open to negotiation. But nearly always the Trustee has much the upper hand. Good Luck. If the property being sold is unsecured, the fee is.
Answer Applies to: Wisconsin
Replied: 8/12/2015
Eranthe Law Firm
Eranthe Law Firm | Cate Eranthe
Trustee fees are about 10% so it sounds reasonable.
Answer Applies to: California
Replied: 8/12/2015
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
Reasonable is up to the US attorney office and depends on how much work the trustee did.
Answer Applies to: New York
Replied: 8/12/2015
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Trustee fees are set by the bankruptcy code. Look at section 326 of Title 11. (11 U.S.C.S. 326). This is the maximum the trustee can charge. The ultimate amount still must be approved by the court. If you don't have a lawyer you should get one now.
Answer Applies to: California
Replied: 8/12/2015
A Fresh Start
A Fresh Start | Dorothy G Bunce
Local bankruptcy court rules state what amount a bankruptcy trustee gets paid for performing services to the estate. In Nevada, the trustee gets a 10 percent fee on all property collected for distribution. The trustee has no incentive to negotiate on the fee with a potential buyer of estate property, and frankly, I do not understand why it would make any difference to the buyer what amount the trustee takes for providing services. FYI, in addition to the trustee fee, the trustee is also entitled to reimbursement for legal fees and accountant services.
Answer Applies to: Nevada
Replied: 8/12/2015
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