how much can trustee/creditors take

[jeffro389]

I posted a thread earlier about a friend, but this is a little different.. If $34000 in unsecured credit is in the petition, then he inherits $50000, what reasonable amount would be expected to give to the creditors? all $34000, or is there normally some reduced amount (chapter7). I know it depends on how many creditors make a claim and all that..

[justbroke]

If every creditor files an allowed unsecured claim, then it would be... $34,000 PLUS the Trustee's fee. The Trustee's fee on $34,000 will be at about $4,250 (I don't feel like doing the actual math as the Trustee's commission is a sliding scale).

There is no reduced amount (period). It is entirely based on claims filed plus the Trustee's fee. Additionally, priority unsecured debt would also be included such as unpaid (priority) taxes. Priority unsecured debt is paid first and then the general unsecured debt. The Trustee would always receive their commission.

[jeffro389]

grrrr... thanks!

[jeffro389]

im just curious on how many creditors actually make a claim

[justbroke]

There is no way anyone can answer that question. I can tell you that if the Trustee, in a Chapter 7, sends a Notice of Potential Distribution to all the creditors listed on the petition, it is highly likely that most if not all will file a claim. Only a slow or disinterested creditor would ignore such a notice.