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Chapter 13 Bankruptcy Trustee

The Executive Office of the United States Trustee is the executive branch agency, which is entrusted with the task of supervising the processes involved under Chapter 13 bankruptcy. The task of the trustee begins from the moment a petition for the same is filed by the debtor and ends only on the discharge of the Chapter 13 bankruptcy. He is remunerated for his services through the U.S. Trustee, with a percentage of the funds that come from the bankruptcy estate.  

When a petition is filed before the bankruptcy court, it is sent to the trustee who reviews the various documents submitted to confirm its adherence to the rules and laws governing bankruptcy within the state. The standing trustee channels the initial efforts to confirm that the debtor displays “good faith” in his efforts to repay the debts due from him. They will make sure that the amount set aside for the expenses of the debtor and the expenses mentioned by the debtor in the various schedules are not reasonably high. The Chapter 13 bankruptcy trustee can place an objection if he is dissatisfied with the repayment schedule presented by the debtor. He may demand the debtor to place before the Court the proposal to hike the payment.  

When the Court calls for the confirmation hearing of the creditors, the trustee can recommend or oppose the plan. As the trustee’s recommendations hold greater weight, it will be given with serious consideration by the Court.  

The law provides an opportunity for the creditors to oppose the plan so proposed. The trustee typically reviews the payment plan to the creditors and the proof of claim submitted by the creditors at the court’s request within 90 days of the date of filing and may object the claims for reasons they may seem fit.  

When a plan is received with the approval of all the parties concerned, the trustee is entrusted with the task of collecting the money from the debtor and distributing them to the creditors besides keeping record of the payments made by the debtor. When the tenure gets completed, the trustee is to conduct an audit and submit a final report to the Court to discharge the debtor from his outstanding debts. Once the report is confirmed by the bankruptcy judge, the Chapter 13 trustee’s job gets completed. Thus, the role of a trustee is highly crucial under Chapter 13 bankruptcy.


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