The Role of the Bankruptcy Trustee in Chapter 13Darin Swayne2022-08-19T10:44:13+00:00
Chapter 13 Bankruptcy Attorney in Pasadena, CA
You could be wondering if declaring bankruptcy under California Chapter 13 is the most effective method of obtaining debt relief in your situation. One common method of debt relief is filing for bankruptcy. Yet, the process is not simple. There is a need to learn the complex in and outs of bankruptcy including eligibility, the role of a chapter 13 bankruptcy trustee, the means test, and how to file.
Individuals who can afford to repay a portion of their debts but need assistance restructuring their debts into an affordable repayment plan are eligible to file for bankruptcy under Chapter 13. As part of the process, debtors, also known as the individuals who file for Chapter 13 bankruptcy, are required to propose a plan to repay some or all of their outstanding debts. A Chapter 13 bankruptcy is a repayment plan that can last between three and five years (with the exception of a 100 percent plan). At Daniela Romero Law, our attorneys have years of experience and are based in Pasadena, CA. We are dedicated to addressing the concerns of bankruptcy trustees and taking prompt legal action. If you have any questions, give us a call or make an appointment for a free consultation. To discuss the various legal options available to you, we are available whenever you need legal advice.
What is the Role of a Bankruptcy Trustee in Pasadena, CA?
A person who administers property that is held in trust, such as assets owned by a company, is called a trustee. It is the responsibility of a trustee to administer the property in a fair and impartial manner for the benefit of the beneficiary, whether that beneficiary is an individual or a company. One kind of trustee is known as a bankruptcy trustee, and their job is to oversee the process of filing for bankruptcy.
United States Trustee Program Responsibilities
The United States Trustee Program within the Department of Justice is responsible for selecting bankruptcy trustees. These trustees are private individuals who have extensive knowledge in the areas of business, accounting, management, and the legal issues that are associated with bankruptcy. “Federal Watchdog” is how the Trustee program describes the role of a trustee in the legal system.
Appointment of Trustee
When a person submits a bankruptcy petition, the Trustee Program will appoint a trustee to oversee the case and the assets, but this will depend on the type of bankruptcy that was filed. The trustee is responsible for monitoring the activities of the parties involved in the bankruptcy and ensuring that the process is carried out in accordance with the applicable laws and the type of bankruptcy involved. The trustee is compensated monetarily for their services in the administration of the bankruptcy. It is possible for the trustee to receive payment not only for their services but also for any reasonable expenses they incurred while performing their duties.
What are Other Functions of a Chapter 13 Bankruptcy Trustee?
The Chapter 13 bankruptcy allows you to repay creditors in installments over three to five years, reorganizing your debt. The trustee appointed to your Chapter 13 bankruptcy case supervises the plan’s administration. Among the numerous duties of the trustee are the following:
reviewing the bankruptcy paperwork
evaluating the proposed plan’s compliance with bankruptcy laws
collecting plan payments and dispersing funds to creditors
Other than that, complying with the terms of the Chapter 13 plan.
Examining the Chapter 13 Petition and Repayment Plan
Your repayment proposal outlines how you intend to repay some or all of your creditors. A trustee’s duties include ensuring the fairness of your Chapter 13 repayment plan to your creditors. The bankruptcy trustee begins by
Examining the initial official bankruptcy forms submitted,
confirming your information by comparing the numbers on the official forms to the documents you will send the trustee shortly after filing.
The petition and accompanying schedules detail your monthly income, expenses, assets, and liabilities. The trustee will use your tax returns, pay stubs, bank statements, and any other documents required by your particular trustee to verify your financial disclosures.
Chapter 13 Creditors’ Meeting Management
Approximately one month after filing your case, you will attend a meeting of creditors administered by the Chapter 13 trustee. You will answer the trustee’s questions under oath about the information contained in your bankruptcy paperwork, plan, and supporting documents. Expect to be asked about your income, assets, and any other pertinent information regarding your bankruptcy. Creditors will be able to submit questions as well. If additional paperwork is required, the trustee will postpone the meeting. If this is not the case, the trustee will adjourn the meeting.
Attending the Hearing for Confirmation
If a trustee finds a problem with your plan, he or she may object to its confirmation (court approval). You will have a limited amount of time to resolve the issue or draft a plan of opposition. The trustee will attend the confirmation hearing and share his or her assessment of the plan’s viability with the judge (meets all requirements). The judge will decide whether to approve the plan.
Managing the Program for Bankruptcy Repayment
You are required to begin sending monthly payments to the trustee in accordance with your proposed repayment plan within 30 days of filing your Chapter 13 petition. Until the court approves your repayment plan, the trustee will hold the funds in trust for your creditors. After court approval, the Chapter 13 trustee distributes funds to creditors in accordance with the plan’s terms. It takes between three and five years to complete a Chapter 13 plan. The trustee will continue to receive your payments and distribute them to your creditors until the completion of the plan. The trustee must evaluate each creditor’s proof of claim form and keep a record of all funds received and the amount paid to each creditor.
Objections to Improper Creditor Claims in Chapter 13
Creditors must file a proof of claim with the court within seventy days of the case’s filing date in order to receive Chapter 13 funds (government creditors have 180 days). Documentation in the form of a contract or agreement stating the amount owed to the creditor is included in the proof of claim.
The Chapter 13 trustee reviews creditor claims and objects to claims that are improperly filed or lack the necessary documentation. Other parties may object as well.
Learn More About the Role of a Chapter 13 Bankruptcy Trustee with Reliable Bankruptcy Lawyers today!
Hundreds of individuals, families, and business owners in Pasadena have been assisted by our attorneys in resolving their debts through Chapter 13 and other debt relief strategies. The Daniela Romero Law office can provide the assistance you need to fulfill your plan’s obligations by focusing on bankruptcy. Call our firm for information on the advantages of bankruptcy and an unbiased legal opinion.
Get A Fresh Start Today!
Stop losing sleep over debt! We help good people get out of debt and get a fresh start! Contact us today!
Concerned about how much it will cost to file bankruptcy? Nervous about how bankruptcy will affect your credit? Whatever is holding you back, it is time to stop worrying and start taking control again. We can help you do just that, put you back in control of your financial future. So, request a free consultation now. You have nothing to lose and peace of mind to gain. We make bankruptcy filing affordable and help you to rebuild your credit for free. Start Now!