January 6th, 2010 by Questions
I have been in bankruptcy for 5 years, but my circumstances have changed due to a major creditor dropping their claim in full. Now I`m able to pay my remaining creditors 100% on the dollar, through a `reverse mortgage` on my home. My trustee says that over the past 5 years he wants $15,000 from me over and above the 100% on the dollar. My question is shouldn`t the trustees fees come out of the 100% on the dollar offer before they get paid? The remaining creditors would get approx. $36,000 at 100%, adding in an additional $15,000 would make my reverse mortage $51,000.
Please help me understand I don`t know if this is fair,I don`t know who else to ask.
Posted from: Ontario
One Response to “Please Help”
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January 07, 2010 at 9:18 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
It sounds like the trustee is following what is laid out in the legislation. If there is enough assets to generate payment in full, this is done after the trsutee fees are paid. If you are concerned you can review this with your local Superintendent of Bankrutpcy, but from what you have told me this is exactly what would happen as you are only to receive money if both the trustee fees are paid and the creditors receive payment in full (plus a 5% interest charge).