Understanding the Chapter 13 Bankruptcy Trustee
Our Memphis bankruptcy firm works with trustees every single day, and we depend on them to help our clients all the way through their case. So we know what an important role your Chapter 13 bankruptcy trustee will play in your case.
Here’s what you need to know about the role of the Chapter 13 trustee and how their job might affect you.
Background and Experience
Chapter 13 bankruptcy allows you to set up a repayment plan for your debts, and the trustee oversees the administration of that plan. They have a complex job, including:
- evaluating the proposed repayment plan
- assessing your financial records, and
- making sure everyone follows the bankruptcy laws.
For that reason, the courts often appoint attorneys with expertise in bankruptcy law to be Chapter 13 trustees. Trustees may also come from accounting or finance backgrounds. But regardless, the court looks for people who are smart, efficient, and will treat all parties involved fairly.
The Duties and Responsibilities of a Chapter 13 Bankruptcy Trustee
The Chapter 13 trustee’s primary responsibility is to oversee your bankruptcy plan. This includes:
- reviewing your proposed plan
- ensuring it complies with bankruptcy laws, and
- collecting payments from you once it’s approved.
The trustee conducts a thorough review of your financial records to make sure everything you’ve submitted with your attorney is accurate. Then, they act as a mediator between you and your creditors and distribute your payments according to the approved plan.
Confirming Your Chapter 13 Payment Plan
As the first part of their job, the trustee reviews your proposed repayment plan. They may recommend modifications or suggest changes to make sure it will work for everyone involved.
Then, the trustee presents their findings and recommendations to the bankruptcy court, and the court ultimately decides whether to confirm your plan.
Collection and Distribution of Payments
Once your plan is confirmed, you will make regular payments to the trustee. They distribute those payments to your creditors as outlined in the plan.
The trustee keeps a careful record of all the payments they receive and disburse to your creditors.
Communication and Reporting
The Chapter 13 trustee serves as a point of contact between you, your creditors, and the court.
They may organize meetings of creditors, where they verify your financial situation and address any concerns raised by creditors. Additionally, they may request updated information or documentation if your financial situation changes. And they prepare regular reports for the court detailing the progress of your case.
Help Navigating the Bankruptcy Process
The Chapter 13 trustee plays a critical role in overseeing your bankruptcy case, but they aren’t there to serve you. They serve the courts.
In order to build a successful Chapter 13 case, you need an experienced bankruptcy attorney who has worked with the trustees and knows how to comply with their requests.
For decades, our Memphis bankruptcy firm has helped our clients navigate the bankruptcy process and cooperate with trustees. As a result, we’ve helped thousands of people save their homes and cars, stop wage garnishment, end creditor harassment, and finally get out of debt for good.
We can help you, too. To get started with a free consultation, contact us today at 901-327-2100 or fill out the form on this page.