How are Panel Trustees compensated?
Panel Trustees are paid $60 for each Chapter 7 case they administer. In addition to the standard fee, Panel Trustees are compensated on an incentive commission bases. Panel Trustees are compensated on a commission basis in order to maximize the dollar amount of assets brought into the estate by the Trustee. The commission is determined on the total disbursements made by the Panel Trustee to interested parties of the estate, excluding any payment to the debtor. The commission rate is : 25% on the first $5,000 distributed; 10% on the next $45,000 distributed, 5% on the next $955,000 and 3% for every dollar distributed in excess of $1,000,000. The commissions earned by the Trustee are reviewed by the Court, when requested, to determine if the fees are reasonable. Panel Trustees are usually awarded their full commission compensation since they handle hundreds of cases in which a great deal of work may be done and the only fee earned in $60.
