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Bankruptcy Administration: Case Receipts Paid to Creditors and Professionals

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Report Type Reports and Testimonies
Report Date July 13, 1994
Report No. GGD-94-173
Subject
Summary:

Businesses or individuals who file for Chapter 7 bankruptcy surrender their nonexempt assets to a trustee, who converts them to cash for distribution to creditors. Congress is considering changes in the bankruptcy system that would increase compensation to trustees. Many trustees have said that they are inadequately compensated under the current fee system. This report provides information on the total amount and distribution of bankruptcy estate receipts in cases terminated under Chapter 7 of the bankruptcy code in statistical years 1991 and 1992. GAO discusses the amount of total receipts paid to professionals, including trustees, attorneys, and other professionals, such as accountants and appraiser; to creditors; and to others, such as debtors.

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