Thursday, August 11, 2022

Chapter 11 Trustee Recovers Enhanced Lodestar for Superior Result

 Bankruptcy trustees often perform a thankless job, scrubbing through thousands of no-asset files looking for that one case that will earn them a sizeable commission. While Chapter 7 trustees are paid a commission on funds distributed to creditors, compensation for Chapter 11 trustees more closely resembles an hourly fee engagement. A recent case from Judge Tony Davis of the Western District of Texas illustrates how the two forms of compensation may dramatically differ. In re WC Met Center, LLC, Case No. 21-10698 (Bankr. W.D. Tex. 7/15/22). The opinion can be found here