In Chapter 13 bankruptcy, a trustee is responsible for overseeing the payment plan and ensuring that it is in compliance with the bankruptcy code. The Chapter 13 trustee’s primary goal is to review the case and determine whether it meets the requirements of the bankruptcy code.
If the trustee finds that the case does not comply with the code, they may file an objection to the confirmation of the payment plan. The debtor’s attorney will then respond to the objection, and the court will ultimately decide whether to confirm the plan.
The Chapter 13 trustee’s secondary goal is to collect the payments made by the debtor each month and disburse these funds according to the rules of the bankruptcy code. This may involve paying back secured debts, such as mortgage arrears and car loans, as well as non-dischargeable taxes. Any remaining funds will be used to pay back unsecured creditors.
Overall, the Chapter 13 trustee plays a crucial role in the bankruptcy process, ensuring that the payment plan is in compliance with the bankruptcy code and that the funds are distributed fairly to creditors. It is essential to work closely with your Chapter 13 trustee and follow their instructions to complete your bankruptcy plan successfully.