business bankruptcy and trustees retainer
September 12th, 2006 by Questions
We are trying to negotiate with creditors so as not to declare business bankruptcy.
Another reason is that the trustee requires $5000. up front as a retainer.
Ironically – we can\’t afford to declare bankruptcy.
However – if we are not successful as negotiating with creditors – and they petition us into bankruptcy – who pays the trustees retainer??
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September 12, 2006 at 9:01 am, A licensed trustee said:
You may not beleive this, but the trustee you have been speaking with is being very reasonable – we often require a minimum retainer of $10,000 for business bankruptcies.
Whomever places/forces the company into bankruptcy will be ultimately responsible for paying the trustee’s fee if there isn’t enough money raised by selling the assets. If your creditors petition (force) the company into bankruptcy then they will have to guarantee the trustee’s fees. If you voluntarily do it then you will guarantee the trustee’s fees.