TRUSTEE`S FEES, IN QUESTION
December 17th, 2009 by Questions
IN 2003 (6 YEARS AGO) I WENT INTO A FIRST TIME BANKRUPTCY, I`M STILL NOT DISCHARGED. LAST WEEK THE TOP TWO CREDITORS HAVE DROPPED THEIR CLAIMS, REDUCING MY DEBT TO APPROXIMATELY $35,000. MY TRUSTEE WANTS ME TO TAKE OUT A REVERSE MORTGAGE ON MY HOME AND TO OFFER MY CREDITORS 90% ON THE DOLLAR (31,500) PLUS AN ADDITIONAL $15,000 FOR HIS TRUSTEE FEES, PLUS AN ADDITIONAL $2,500. FOR WRITING UP A CONSUMER PROPOSAL. THIS WOULD AMOUNT TO A TOTAL OF $49,000 IN A REVERSE MORTGAGE. IF I OFFERED TO PAY 100% ON THE DOLLAR INSTEAD OF 90% WOULD A CONSUMER PROPOSAL BE NECESSARY, THUS SAVING THE ADDITIONAL $2,500.
OVERALL IT WAS MY UNDERSTANDING THAT ALL THE TRUSTEE`S FEE SHOULD BE PAID OUT OF THE PROPOSAL OFFER AND NOT PAID SEPERATELY, A`M I CORRECT?
Posted from: Ontario
One Response to “TRUSTEE`S FEES, IN QUESTION”
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December 18, 2009 at 9:15 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
It is impossible to determine whether or not these fees are appropriate or not. But what I can tell you is that finishing up a bankruptcy that you were not discharge from such a long tiem ago is a very involved process. The trustee and the courts have to look at the change in your situation, the existing equity in your house, your current income, assets etc and just the fact that you have enough space on your mortgage to obtain a reverse mortgage suggests that there is plenty of equity in the house that will result in a sizeable repayment to yoru creditors.
However, if you feel the trustee’s fees are not being charged as appropriate you can review this with your local Superintendent of Bankruptcy office.