Because a Chapter 13 bankruptcy typically lasts 3-5 years, the chapter 13 bankruptcy trustee plays a crucial role in your bankruptcy proceedings. In a Chapter 13 bankruptcy, you will create a repayment plan that ensures all your secured, priority, and some if any unsecured debts are paid in the form of a monthly payment. Upon the completion of your repayment plan, all other unsecured debt not covered by your income is discharged. The bankruptcy trustee's role is to review your bankruptcy petition and repayment plan, conduct the meeting of creditors, and manage your payments each month.
Chapter 13 Bankruptcy Trustee
When you first file for bankruptcy, your bankruptcy case will be assigned a bankruptcy trustee and will have a huge impact on the success of your Chapter 13 bankruptcy. The chapter 13 bankruptcy trustee will initially review your documents, ensuring that everything is in order, all the information is accurate, and that your repayment plan is fair and equitable to your creditors. A bankruptcy trustee's primary function is to make sure that your creditor's get the maximum amount of money in repayment. Therefore, they may ask for additional information about income or debts listed in your bankruptcy schedules.
Chapter 13 Meeting of Creditors
Once your Chapter 13 bankruptcy case is filed, you'll meet with the bankruptcy trustee at the meeting of creditors. This meeting will usually take place within 4-6 weeks of filing your petition for bankruptcy protection. The 341 meeting of creditors is typically you, the bankruptcy trustee, and your bankruptcy lawyer. Creditors can attend, but typically never do. While your bankruptcy attorney may accompany you to the meeting, you'll be responsible for answer the trustee's questions. The Chapter 13 bankruptcy trustee may ask you to provide additional information based on the meeting, and it's important to collect those and deliver as soon as possible, as this can cause a delay in your bankruptcy case.
Chapter 13 Repayment Plan
Once your meeting of creditors is completed and your chapter 13 repayment plan is approved, or "confirmed", you will begin making monthly payments directly to your Chapter 13 bankruptcy trustee, who will, in turn, distribute those proceeds to your creditors. The trustee will track payments and will also be the individual you report any changes in your income too.
Sacramento Bankruptcy Lawyer
Because you'll interface with the Chapter 13 bankruptcy trustee through the entire repayment period of your bankruptcy, it's important to work with a Bankruptcy attorney to file bankruptcy and discharge your debt. A knowledgeable and experienced Sacramento bankruptcy lawyer knows and has most likely worked with all the bankruptcy trustees in your bankruptcy district. Having this knowledge will allow you to plan for potential problem areas with your bankruptcy and provide you with the know-how of successfully completing a Chapter 13 bankruptcy.