The Role of Chapter 13 Trustees

Anyone who files a Chapter 13 bankruptcy petition gains some familiarity with a Chapter 13 trustee. In Detroit, there are three Chapter 13 trustees. Each trustee administers cases assigned under a particular judge. During the bankruptcy case, trustees collect money from the debtors and send it to creditors. The Chapter 13 trustees are supposed be a neutral party to the case, but many debtors will find that the trustees’ actions usually seem to benefit creditors.

In many cases, a Chapter 13 trustee reviews the debtor’s income and expenses with the goal of making sure that the creditors receive as much money as possible. Debtors are supposed to contribute all of their disposable income toward their Chapter 13 plan. As a result, the trustee will often file an objection in the case if it seems as if certain expenses are unreasonable for someone in bankruptcy. The trustee also makes sure that the debtor’s payment plan complies with the US Bankruptcy Code. Despite trustee objections, an experienced Detroit bankruptcy attorney can get the debtor’s payment plan approved by the court.

Posted in Chapter 13 Bankruptcy, Trustee
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