Posts Tagged ‘Chapter 13’
The Chapter 13 Trustee’s role is not just of an overseer but is much more involved. In some instances, there will be one trustee handling all Chapter 13 work in a particular area but in the Eastern District of Wisconsin currently there are two trustees. There is no liquidation involved in a Chapter 13 case so the trustee’s responsibility is to manage the financial affairs of the debtor. The trustee must be present at all hearings that concern property valuation, must ensure that all debtor payments are received and also oversees the disbursement of money to the respective creditors.
The United States Trustee appoints a “standing trustee” to administer cases in a specific geographic area.
I often have clients who are concerned that if they don’t
“qualify” for a Chapter 7, they don’t want to do a
bankruptcy at all. Perhaps they don’t qualify due to
higher income, or due to a previous Chapter 7 filing in the
last eight years. These clients have a vague idea of what a
Chapter 13 bankruptcy is – a repayment plan – and don’t
feel it’s “worth” doing a bankruptcy if they have to
pay their creditors. Isn’t that why they are seeing a
lawyer in the first place, because they cannot afford to pay
the creditors? Chapter 13 bankruptcies can be difficult, so
I understand the hesitation. But before making a decision a
person should know more about what a Chapter 13 Bankruptcy
actually is, and also how to weigh that option against his
current situation.