If you file a Chapter 13 bankruptcy, a Chapter 13 trustee will be assigned to your case. You will meet the trustee when you go to court for the Meeting of Creditors (Section 341 Meeting) as the trustee presides over this meeting.
The bankruptcy trustee in a Chapter 13 case generally has a more complex role to play than does a trustee in a Chapter 7 case.
First, whereas the Chapter 7 trustee is mainly concerned with the assets you own, the Chapter 13 is mainly concerned with your monthly income and living expenses. Unlike in a Chapter 7 bankruptcy where the trustee takes any non-exempt property you may own, sells that property and disburses the proceeds to your unsecured creditors, in a Chapter 13 bankruptcy you generally get to keep any non-exempt property you may own in exchange for paying your creditors what you can afford to pay them over a 36 to 60 month repayment plan. The Chapter 13 trustee’s main concern is that you are paying as much as you possibly can each month under the Chapter 13 repayment plan. Therefore, the Chapter 13 seeks to ensure that you are not hiding income and that your living expenses are not excessive.
Second, your monthly Chapter 13 plan payments are made to the Chapter 13 trustee. He is responsible for paying all of your creditors according to your Chapter 13 plan once it has been approved by the bankruptcy judge. Should you fall behind in your monthly payments to the Chapter 13 trustee, he will file a motion to dismiss your case.
It is important that you fully cooperate with the Chapter 13 trustee. Failure to cooperate could result in your case being dismissed or your bankruptcy discharge being denied.
If you are struggling with debt problems and being harrassed by bill collectors and would like to know more about how bankruptcy may be able to help you, contact me today by phone or email to schedule a FREE initial consultation. I would count it a privilege to be able to visit with you in a relaxed and confidential environment where I’ll answer all of your questions in plain English and give you the straight scoop on the pros and cons of bankruptcy as related to your specific situation.
