Issues and questions that come up during your bankruptcy period

Moderators: TalbotWoods, JaneClack

By indy2005
#201646 Hi,

How are trustees fees dealt with if say there are thousands of pounds of fees left unpaid at your discharge? I have read around a few different forums, and have encountered people panicking because they have been discharged and now owe the trustee 16K in fees. This has be worried as this seems to go against the principle of going BR....i.e. to get discharged debt free.

Regards

i
By butterfly
#201649 I'm pretty sure their fees are treated as a higher priority than any creditors in the same way as the OR's fees are. I would have thought their fees would be paid by the creditors, but I don't know. Either way, I'm pretty sure their fees would not be the bankrupt's responsibility.
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By MrsT
#201650 All fees are included in your BR. If the OR is able to realise any monies from assets/IPA's etc, then their fees are paid off first and then creditors with whats left (in I believe a pecking order of HMRC first if owed, etc). I have to be honest, I look at loads of BR forums and have never seen this one before!
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By MrsT
#201656 A quick look through that post, explains it all really.

The OR is looking to realise the property as an asset in BR. He has 3 years to do that in, although we are discharged after one year. If the assets(property) is not realised in that time frame then there is nothing to cover the fees.

Usually, all this stuff is sorted out within the BR period of a year but in this individual case, its taking a little longer.

You do not get a big bill at the end of BR. Its either paid for through assets or included as a debt. I wouldn't worry about it too much.
By indy2005
#201684 OK thanks,

and I am guessing the IP is not the one left short if there arent a lot of assets...its the creditors I would imagine.

My case has gone to the RTLU rather than to a separate IP. I am not sure if this is a good/bad thing...but I imagine if its a wing of the OR office, they wont be as mercenary on the fees.

Regards

i