It depends. In an asset Chapter 7, the trustee deducts her commission and any professional fees (such as her attorney fees, accountant fees and others) before distributing any money to the creditors. Whatever mount leftover will be distributed pro rata. Meaning, if your claim makes-up 10% of the total claim, you will receive 10% of the net amount.

In a Chapter 13, the debtor proposes to pay certain amount each month, and must explain how much is being paid to each type of creditor. How much you are paid is a product of the debtor’s income, expenses, assets, other debts and other factors.

Posted in: Creditor Rights in Bankruptcy