Best Orange County Bankruptcy Lawyer – Bankruptcy Attorney
What is a bankruptcy trustee and what is his/her role in a Chapter 7 or 13 bankruptcy case? A Chapter 13 bankruptcy is also called a “wage earner’s plan” because it allows individuals with regular income, who are in financial difficulties, to develop a plan to repay all or part of their debts. When an individual files a Chapter 13 petition, say in Orange County, Section 1302 of the Bankruptcy Code provides that a trustee, hopefully an impartial one, is appointed. In some districts, the U.S. trustee or the bankruptcy administrator appoints one trustee to serve in all Chapter 13 cases filed in that district.
Section 1302(b) enumerates the duties and responsibilities of a Chapter 13 trustee. The Chapter 13 trustee, first and foremost, administers the case. Yes, you heard it right. A bankruptcy trustee administers your case. You, as the debtor, do not administer your own case. The trustee acts as the disbursing agent for payments made under a Chapter 13 plan. He/she also collects the debtor’s payment and pays it to creditors as provided for by the plan in the particular case. The trustee reviews the Chapter 13 plan and usually raises objections if he/she thinks the plan does not meet the requirements for confirmation as provided for in the Bankruptcy Code.
It is not an uncommon occurrence in Orange County Chapter 13 bankruptcy cases that the trustee and the debtor cannot agree on the terms of a plan of reorganization. The trustee might be aggressive in recovering assets for the estates, and this, oftentimes, leads to debtors losing property during the administration of their case. The trustee, by the way, is paid a percentage of the assets he recovers for the debtor’s estate.
The bankruptcy process has many complexities, which, if left to the inexperienced, will lead to the debtor losing more than they already have. The award-winning lawyers at The Law Office of Harold D. Thompson are Orange County bankruptcy lawyers specializing in Chapter 13 cases who have helped regular wage earners prepare and emerge debt free from bankruptcy. Please call our office at 888.665.8330 for a free-no hassle consultation, download a copy of our free California Guide to Bankruptcy or find out how you can become a client right now.