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The Chapter 13 Trustee's Role in Bankruptcy

The Chapter 13 Trustee's Role in Bankruptcy
"The role of the chapter 13 trustee was codified in 1978 under 11 U.S.C. section 1302, which states that the trustee's role is to administer the estate created in bankruptcy and encompasses a variety of responsibilities related to the design and implementation of debtor plans. They are more than simple liquidators and disbursers of funds, as you might discover when seeking relief under other chapters of bankruptcy, such as chapter 7.They are responsible for scrutinizing the debtor's financial affairs, reviewing all documents filed by the debtor, including claimed exemptions, and filing objections to those exemptions to which the debtor is not entitled. They evaluate proposals and make suggestions to the Court regarding their viability. The trustee reviews proofs of claims and objects to the allowance of unlawful claims. They collect and convert assets of the estate into cash, are accountable for all assets received, and must disburse funds according to a predetermined plan. They monitor the debtor's compliance with the plan and seek relief when the debtor fails to comply.The trustee works for neither the creditor nor the debtor, though they can advise and assist the debtor with plan performance, excluding legal matters. At hearings concerning the valuation of property subject to liens, confirmation of the plan, and modification of the plan after confirmation, trustees will testify. They have the sole authority to assert claims on behalf of the estate. The court and the United States trustee must receive a final report and account of the administration of the estate from the trustees. They have numerous other responsibilities that are not codified but implied, and they must collaborate with all parties involved in the chapter 13 bankruptcy proceeding.
" - https://www.affordablecebu.com/

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"The Chapter 13 Trustee's Role in Bankruptcy" was written by Mary under the Finance / Wealth category. It has been read 113 times and generated 0 comments. The article was created on and updated on 03 June 2023.
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