Case Summary:
The initial Chapter 7 Trustee resigned due to a conflict of interest, and a successor trustee was appointed.  The initial trustee applied to the Court for compensation pursuant to the formula in § 326(a).  The successor trustee objected.  The Court noted that § 326(c) caps compensation for multiple trustees, but fails to specify how trustees should divide compensation.  After considering a variety of approaches, the Court determined that the total compensation due under § 326(a) should be calculated when the case was closed, then divided between the two trustees on a pro rata basis based on the quantity of disbursements each made to creditors.

Statute/Rule References:
11 U.S.C. § 326(a)
11 U.S.C. § 326(c)

Key Terms:
Compensation
Conversion
Trustee Fees