Remuneration of Trustee: Canada Debt .ca defines Remuneration of Trustee

Bankruptcy Term Remuneration of Trustee

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Canada Debt has the definition to the bankruptcy and debt term Remuneration of Trustee. Finding answers to terms such as Remuneration of Trustee can be difficult, especially if there is more than one definition which is why we have created a page dedicated to financial terms dealing exclusively with debt. Remuneration of Trustee in financial terms means...

In debt and bankruptcy terms, the phrase / term 'Remuneration of Trustee' is used as follows:

In estates under summary administration and in consumer proposals the trustee's, or administrator's, fees and expenses are set by the Bankruptcy and Insolvency Rules.

In all other cases, the remuneration of the trustee falls under the provisions of section 39 of the Act. Subsection 39(1) states that the remuneration of the trustee shall be such as is voted to the trustee by ordinary resolution at any meeting of creditors. Where the remuneration is not fixed pursuant to subsection 39(1), subsection 39(2) states that the remuneration shall not exceed seven and one-half per cent of the amount remaining out of the realization of the property of the debtor after the claims of the secured creditors have been paid or satisfied. Subsection 39(5) empowers the court to increase or reduce the remuneration.