If you’re going through bankruptcy, you’ve probably encountered the term “bankruptcy trustee”. Whether it’s chapter 7 or chapter 13 bankruptcy, a trustee will always be present to oversee the debtor’s matters. To define, a bankruptcy trustee is a court-appointed individual who is tasked to represent the debtor’s estate in a bankruptcy proceeding.
The role of a bankruptcy trustee goes beyond overseeing the estate. A bankruptcy trustee evaluates and recommends the debtor’s demands based on the U.S. Bankruptcy Code. Every action that the bankruptcy trustee does must collaborate with the bankruptcy court. If matters involving bankruptcy trustees and the role on your estate are too confusing, get in touch with a Royal Oak, MI bankruptcy attorney to help smoothen matters out.
Seasoned Chapter 13 Bankruptcy Attorney in Royal Oak, MI
Chapter 13 bankruptcy is known as the wage earner’s plan. It is a bankruptcy type that enables debtors to reorganize their finances and pay their creditors via a three to five-year repayment plan. In this type of bankruptcy, a chapter 13 bankruptcy trustee’s responsibility stretches from reviewing the bankruptcy paperwork to collecting plan payments, and fulfilling other duties and terms of the chapter 13 plan.
If you are dealing with bankruptcy, be it chapter 7 or chapter 13, it is wise to get in touch with a Royal Oak, MI chapter 13 bankruptcy attorney from Hammerschmidt, Stickradt, & Associates. The law firm which has been servicing clients since 2001, offerspersonalized strategies for dealing withbankruptcy, taking into account your individual situation.
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How would you like to wake up not worrying about your creditors or loan balances? Our Michigan Bankruptcy Attorneys can help you attain new financial freedom! Worried about the cost? We offer payment plans for all budgets and a free credit rebuilding program!
Why do I need a Chapter 13 Bankruptcy Trustee in Royal Oak, MI?
Having a chapter 13 bankruptcy trustee is essential, as it is for having a trustee for any kind of bankruptcy. The trustee’s job is to oversee your estate and take care of all matters involved in collaboration with the bankruptcy court. A trustee must review the paperwork, assess plans, collect payments, and carry out any other terms of the plan.
Dealing with bankruptcy is never easy. Chapter 13 bankruptcy or the wage earner’s plan involves a repayment method in order to pay your creditors. The process can be quite complicated which is why having a seasoned Royal Oak, MI bankruptcy attorney is absolutely an asset to have in this case. A bankruptcy attorney will explain important matters, including the role of a chapter 13 bankruptcy trustee.
For 15 years, the attorneys at Hammerschmidt, Stickradt & Associates have been helping families smoothen out their financial woes. Specializing in areas ranging from bankruptcy to wage garnishment to stopping automatic stay, these bankruptcy attorneys are committed to ensuring you get the best, most plausible outcome for your situation possible. Get in touch with a Royal Oak, MI bankruptcy attorney right now.
What is the Role of a Bankruptcy Trustee in Chapter 13?
When you file for chapter 13 bankruptcy, the individual tasked to oversee your estate is the bankruptcy trustee. A chapter 13 bankruptcy trustee is a court-appointed individual who will administer your estate. From examining plans to providing financial advice, the trustee does it all in your case to ensure that you follow everything in accordance to the bankruptcy plan.
Learn more about the role a chapter 13 bankruptcy trustee plays in the wage earner’s plan.
What is the Chapter 13 Bankruptcy Trustee’s Role?
Chapter 13 bankruptcy trustees have a huge role in the administered cases, especially for suburban or rural districts and in districts with a number of chapter 13 cases. A chapter 13 bankruptcy trustee can play roles:
Providing the debtor with sound financial advice and helping them create a budget. (Legal advice is reserved for the bankruptcy attorney).
Assist the debtor in modifying their payment plan
Provide temporary reprieve should you miss a payment
Partake in the hearings involving item values and hiring appraisers.
While it might seem like they are pretty heavily involved in your bankruptcy case, there are limitations to a trustee’s role. The debtor has control over their money and property that they acquire post filing provided that payments are made. However, if the property increases, trustees can amend the plan by paying creditors a bigger percentage of the owed money than the original.
What are the Duties of a Chapter 13 Bankruptcy Trustee?
The duties of a chapter 13 bankruptcy trustee include the following:
Reviewing the Proposed Chapter 13 Repayment Plan
The proposed plan entails how the debtor intends to pay the creditors. The trustee’s job is to ensure that the chapter 13 repayment plan is fair to the creditors by reviewing the official forms at the beginning of the case and information verification. The information being about your income, expenses, assets, and debts. The chapter 13 bankruptcy trustee uses tax returns, bank statements, and others to confirm financial disclosures.
Conducting a Meeting of the Creditors
After filing for bankruptcy, the debtor is required to attend a meeting of the creditors which is administered by the trustee. The trustee will then ask you questions under oath regarding the financial information stated on your paperwork and documents.
Administering the Repayment Plan
After a month of filing the chapter 13 bankruptcy case, the debtor is required to send monthly payments to the trustee. Once the court approves, the trustee starts distributing funds to creditors. In the 3-5 year span of completing a chapter 13 plan, the trustee will continue to receive payments to pay to creditors until the plan is concluded.
Objecting Improper Claims
Creditors who wish to receive funds require filing a proof of claim within 70 days since the filing date. The proof of claim indicates the amount the debtor owes along with contracts and agreements. The chapter 13 bankruptcy trustee reviews these claims and objects to improperly filed ones.
Call our Royal Oak, MI Bankruptcy Attorney Now!
A chapter 13 bankruptcy trustee has plenty of roles and duties to fulfill in a chapter 13 bankruptcy case. These duties range from providing financial advice to modifying payment plans to pay your creditor. However, a bankruptcy trustee cannot give legal advice.
If you are facing any legal troubles involving bankruptcy in Royal Oak, MI, then it is in your best interests to get in touch with a bankruptcy attorney from Hammerschmidt, Stickradt & Associates. With over 15 years of legal experience under their belt, the bankruptcy attorneys are equipped with knowledge and strategy to ensure you get the best outcome possible. Get in touch with an attorney right now!