What is the role of the trustee in Chapter 13 bankruptcy cases?

Sometimes, those in Tennessee, and elsewhere, who are facing overwhelming debt, choose to file for Chapter 13 bankruptcy. In addition to the person filing, there are a number of people involved in the process, including the bankruptcy trustee. An often-overlooked cog in the bankruptcy wheel, bankruptcy trustees play an integral role in the implementation and completion of Chapter 13 repayment plans.

After a person files a petition for Chapter 13 bankruptcy, the trustee appointed to the case will hold a meeting of the creditors. During these meetings, a bankruptcy trustee and the person’s creditors will ask him or her questions about the proposed plan’s terms and his or her financial affairs. In some cases, people may choose to consult with trustees prior to these meetings to ensure that they have everything in order.

According to the United States Courts, one of the bankruptcy trustee’s primary responsibilities during a Chapter 13 bankruptcy is to evaluate the case. The trustee reviews people’s bankruptcy petitions, including their repayment plans, income and expense information and other documentation. It is then up to the trustee to ensure that all of the calculations are accurate, that the filers’ monthly expenses are reasonable and that the repayment plan is fair to their creditors.

When people file for Chapter 13 bankruptcy, they develop repayment plans to resolve their debts with their creditors. The monthly installments for these plans are forwarded to the trustees, not to each individual creditor. The bankruptcy trustee then pays the creditors the appropriate amount, according to the U.S. Department of Justice.

Navigating the bankruptcy process, and dealing with a trustee and creditors can be difficult for people. As such, those considering filing for Chapter 13 bankruptcy may consider seeking legal representation. An attorney may help them understand their options, as well as guide them through the process.

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