Trustee's fees are paid out depending on the complexity of the bankruptcy.
In a straightforward Bankruptcy, a Trustee's fees are based on a tariff (%) set out in the Bankruptcy and Insolvency Act.
In a more complex Bankruptcy with significant asset recoveries, a Trustee's fees are calculated based on time charges and hourly rates of the staff administering the file.
Similar to a Proposal, creditor dividends are paid out after the Trustee's fees. There are cases where creditors may receive no dividends if the Trustee's time charges exceed the funds in the bankrupt estate.
Trustee's fees are always reviewed and approved by the Office of the Superintendent of Bankruptcy, and in some instances, the Court will provide its approval as well.