What, Exactly, Is the Trustee’s Percentage Fee

In recent years, a handful of cases have discussed the issue of what happens to the trustee’s percentage fee, collected from debtor plan payments, upon the dismissal or conversion of a case prior to confirmation. This is an emerging area of law, with decisions on both sides.  However, with this new issue, there appears to be at least some confusion about this fee. Specifically, at least some judges seem to equate the trustee percentage fee with the trustee’s personal compensation.So, let’s go back to basics – just what is a trustee percentage fee, how is . . .

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rebeccaherr
Chapter 13 Standing Trustee for the District of Maryland (Annapolis)

Becky Herr is a Chapter 13 Trustee for the District of Maryland and District of Columbia, a position she has held since 2019. Before becoming a trustee, she worked as a staff attorney, gaining extensive experience in bankruptcy law. Becky is a graduate of the University of Maryland School of Law and is committed to continuous learning. Currently, she is trying to learn French and how to serve a Tennis ball.

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