In the words of a Forest View bankruptcy attorney, a Chapter 13 trustee is an individual appointed by the Office of the Executive Trustees to handle Chapter 13 cases in a particular jurisdiction. The Chapter 13 trustee is the person to whom you are going to be making your payments and that is the person who was going to be disbursing amounts each month to your creditors pursuant to the plan that you filed with the court and had approved and confirmed by the court. The Chapter 13 trustee is a neutral party to a certain extent in that they will not give you legal advice and they will not represent creditors, either. However, the trustee has a duty to make sure that you are providing all that you are required to provide to your creditors under the Bankruptcy Code. For that reason, you might find that trustee is difficult at the beginning of the case when it comes to your meeting of creditors and when it comes to recommending or not recommending your case for confirmation.
The trustee is going to scrutinize your budget including your income and your expenses and all of your sources of income. The trustee is also going to scrutinize your bankruptcy schedules and typically require certain amendments if things are not perfect. The trustee is someone who can be an asset to you in terms of making your disbursements for you as opposed to doing it on your own. The trustee can also be difficult in terms of bringing Trustees ‘Motions to Dismiss for failure to make planned payments for failure to make plan payments, for failure to provide tax returns, for failure to amend documents or for a myriad of other reasons that a case can be dismissed.
The Chapter 13 trustee does recommend whether or not a case is going to be confirmed in front of the judge, however, the trustee does not have the final say. If you and your attorney disagree with the recommendation of the trustee, then you can ask that the matter be heard for a hearing on confirmation. There are many times when a trustee is recommending confirmation where there really isn’t much for counsel or for the debtor to do. There are other times when cases are very difficult to get confirmed and the trustee is an important person that you have to try to satisfy. Once again, if you can’t satisfy the trustee, you can take the matter before the judge for a hearing on confirmation and the judge will make a decision on whether or not you are complying with the terms of the Bankruptcy Code in paying your creditors their fair share under the code.