Chapter 13 bankruptcy involves the creation of a repayment plan through which the debtor pays off some or complete amount of their dues to the creditors over a 3 to 5-year time frame. The process is overseen and administered by the bankruptcy trustee appointed to the case. According to Dallas based bankruptcy law firm Recovery Law Group, the various responsibilities of a bankruptcy trustee in Chapter 13 include:
- Reviewing of bankruptcy papers
Bankruptcy trustee reviews the forms filled by the debtor at the beginning of the case and verifies the information provided on the form with that on the documents provided along with including tax returns, pay slips, etc. The trustee also takes an account of your income, monthly expenses, debts, and any assets you have.
- Conducting creditors meeting
After a month of filing bankruptcy papers, a Chapter 13 creditors meeting takes place under the administration of bankruptcy trustee. You are expected to answer all questions, under oath, regarding the information provided by you in the documents along with your bankruptcy papers and supporting documents. The creditors can also question you in this meeting.
- Assessment of proposed repayment plan for compliance with bankruptcy laws
A repayment plan is devised keeping in mind your disposable income, your debts, and your assets. During this repayment plan, you are expected to make payments every month to pay off your debts. In case the trustee has an issue with the repayment plan, they can object to it. A confirmation hearing is scheduled where you can draft an opposition in support of your plan. The trustee’s job is to ensure that the payment plan meets all requirements. The judge can then either confirm or reject the plan.
- Collection of plan payments and their distribution among creditors
You need to make monthly payments as per the proposed plan to the bankruptcy trustee within 30 days of filing bank papers. It is the trustee’s duty to hold the funds for the creditors. Once the plan is approved, the trustee can distribute funds to the creditors as per the terms of the plan. This continues for the entire duration of the repayment plan (3 to 5-years). The trustee also evaluates the proof of claim filed by every creditor and keeps an account of the money each creditor has received during the repayment plan.
- Objecting to any improper claims
Creditors wishing to get funds through Chapter 13 bankruptcy Dallas repayment plan need to file a proof of claim within 70 days of the filing date (180 days in case of government creditors). The claim states the amount due to the creditor and has documents (contract or agreement) to prove their claims. These documents are reviewed by the trustee and they may object to any improperly filed claims or those lacking proper documentation.
In case you are confused regarding which bankruptcy chapter is best for you, contact expert bankruptcy lawyers at 888-297-6023 to discuss your case.