A registrar considered the taxation of a trustee’s accounts in bankruptcy estates affected by allegedly inaccurate property appraisals obtained through a debt‑referral consultant.
The trustee had conducted extensive investigations and obtained new appraisals across numerous related estates, incurring significant professional and legal costs while attempting to recover additional equity for creditors.
The Office of the Superintendent of Bankruptcy opposed aspects of the trustee’s remuneration and suggested applying a formula previously discussed by the court.
The court reviewed principles governing trustee compensation and insolvency professional fees, including appellate guidance emphasizing fairness and proportionality.
A revised formula was established providing for a minimum recovery to the trustee and a general 50/50 sharing of additional recoveries between creditors and the trustee in affected estates.
