Role of Chapter 13 Trustee

A Chapter 13 Trustee is usually a lawyer who is appointed by the
bankruptcy court to determine the truthfulness and accuracy of a
Chapter 13 bankruptcy petition, to administer the bankruptcy estate,
receive payments from the petitioner for distribution to the
creditors.

What are the duties of a Chapter 13 Trustee?

1.      The Trustee checks the petition and the schedules filed by the petitioner.  The objective is to test the accuracy of the claims in the petition as well as to determine if the petition was filed only to
evade payment of debts.

2.      The Trustee reviews the payment plan submitted by the petitioner to see if it is viable considering the present and projected income of the petitioner as well as his living expenses.

3.      The Trustee also ensures that the petitioner pays his creditors as much he can afford by reviewing all the assets and properties that the petitioner has which can be turned into cash.

4.      The Trustee schedules a meeting between the petitioner and all his creditors.  He will facilitate that meeting and entertain objections and questions from the creditors with regard to the payment plan proposed by the petitioner.

5.      The Trustee reviews the proofs of claim filed by the creditors of the petitioner.  This is to ensure that only fully documented claims or debts will be included in the payment plan.

6.      The Trustee receives the payments from the petitioner under the payment plan even before the Bankruptcy court has approved the proposed payment plan.

7.      The Trustee distributes the payments made by the petitioner to the creditors in accordance with their priority and in accordance with the payment plan.

8.      The Trustee prepares an inventory or report as to all the money and properties received by him and paid out to the creditors.

We at the Maxwell Law Firm PLLC, assist in client debt settlement, foreclosure defense, tax collection defense, filing for Chapter 7 and 13 bankruptcy, and mortgage home loan modifications. Contact us and speak to our competent and experienced New York Bankruptcy Attorney so that you can get the debt relief you are seeking. Please give us a call at 718-701-0095 to discuss your options.

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