Every bankruptcy case has a debtor, creditor(s), lawyers, judge/court, and a trustee. If your case is a Chapter 13 bankruptcy then your trustee will play a crucial role in making sure that everything is being completed accurately and legally. Whereas your lawyer represents you and your interests and your creditor’s lawyers represent them and their interests, Chapter 13 bankruptcy trustees are supposed to be unbiased and look out for the interest of the law.
More on Chapter 13 Bankruptcy Trustees
Your Chapter 13 bankruptcy trustee was appointed by the United States Trustee whose job it is to appoint and evaluate the actions of both Chapter 7 and Chapter 13 bankruptcy trustees. Generally, the trustee will serve all Chapter 13 bankruptcy cases in that specific district and earns a percentage of the funds involved. The trustee’s earnings are checked against their operating expenses by the UST who appointed the trustee in the first place so you will not have to worry about any foul play with your trustee.
With a Chapter 13 bankruptcy you are not liquidating your assets like you would with a Chapter 7 bankruptcy. Instead you are adhering to a strict budget which takes a portion of your income and distributes it to your creditor(s) over the course of no more than five years. The main role of the trustee throughout this process is to take the agreed upon percentage of your income and pay your creditor(s) with it. The trustee is more or less a middle man. On top of that, the trustee will also keep a close eye on you to make sure you’re sticking to the court approved budget as well as that you’re making payments on time.
Know the Entire Bankruptcy Process
Even though you may not be able to directly impact the role of the Chapter 13 bankruptcy trustee, it is still important to know all the players and their functions throughout your bankruptcy process. That way you won’t be surprised by anything and will be prepared so as to not make any mistakes. Even the simplest error in paperwork or other aspect of your bankruptcy could lead to a dismissal of your case if discovered. This would be disastrous as your finances would still be in ruins and you wouldn’t be eligible to re-file your bankruptcy for several years.
If you want to learn more about the Chapter 13 bankruptcy trustee and their role in your bankruptcy case then you should mention it when you speak with bankruptcy attorneys. Any bankruptcy attorney should be able to fully and accurately describe the role of the trustee and how it pertains to your case.
