Considering Dallas bankruptcy? Wondering about what it will entail? You may have heard that you will be appointed a bankruptcy trustee to oversee your case. Maybe you wondered what that trustee’s duties are. Wonder no more. Here is a simple rundown of the bankruptcy trustee’s role in your Chapter 13 Dallas bankruptcy
A Dallas bankruptcy trustee’s duties in Chapter 13 are different from the trustee’s duties in Chapter 7, so it may be worthwhile to go over the Chapter 13 duties. Under Chapter 13, you will file a repayment plan with the court based on your ability to make payments on your existing debts. The trustee will review this plan with you and ensure that all the numbers contained therein are accurate. Since part of the trustee’s job is to get the maximum amount of value for the creditors in repayment, sometimes the Dallas bankruptcy trustee will object to some of the calculations, if he or she thinks you can afford higher payments than you are claiming.
After this process, the trustee begins to oversee the repayment plan for your Chapter 13. Your payments will go directly to the Dallas bankruptcy trustee, who will administer these payments by disbursing them to the proper creditors as outlined in the plan. This means that the trustee works with you for the entirety of the three to five year period that your repayment plan is in effect, taking all of your payments, and making regular payments to your creditors. This is very different from a Chapter 7 case, in which the trustee’s relationship is relatively short lived.
Lest you think the Dallas bankruptcy trustee is on the side of the creditors, he or she is also trusted with objecting to fraudulent proofs of claim against you by creditors. The bankruptcy trustee is an impartial party in your Chapter 13 case.