After successfully filing all your chapter 13 bankruptcy documents, including your payment plan, the bankruptcy court will then appoint a trustee. They will be responsible for examining your papers and setting every bankruptcy hearing. That being said, bankruptcy trustees indeed play a huge role in every Chapter 13 bankruptcy process. You must keep in mind, as well, that your creditors will get involved in the process. They might submit claims and get payments from the trustee at the moment you start making monthly payments.
Creditors are also allowed to pose objections to your repayment plan if they perceive it to be shortchanged. You will probably have to appear at court hearings to conduct a successful negotiation with the creditors. Doing this by yourself is quite confusing and frustrating. It is therefore critical to talk to an experienced Rockville bankruptcy lawyer, not only to help you understand the role of the bankruptcy trustee in Chapter 13 , but to help you make a successful negotiation with the creditors to avoid future conflicts and quandaries.
Kurland Law Group is one of the most respected law firms in Rockville, Maryland. With over 20 years of experience helping clients get out of debt and have a fresh start, we are able to provide effective legal solutions to confusing circumstances. We have represented families, companies, and individuals with excellence. We are dedicated to educating and helping you throughout the entire process of bankruptcy. If you have any confusion with Chapter 13 bankruptcy and the role of trustee, set a free legal consultation today!
Following your bankruptcy papers’ filing, the automatic stay will take effect. Creditors will not be aware of your case until they get a notice of your bankruptcy petition from the bankruptcy court. However, it might take a couple of days for the notice to arrive. If you want a quicker outcome, you can notify the creditors by yourself. This applies if you file right after a foreclosure sale, wage garnishment, court date, or other time-consuming events.
You or your bankruptcy lawyer can fax a letter to the right creditors. The letter should make them aware of the petition for bankruptcy and that the automatic stay will preclude any collection activities. You need to ensure that your case number, name, date of filing, and the district and court where you filed are included. If you have been involved in a court proceeding, such as a collection lawsuit or foreclosure proceedings, you can inform the court by sending a letter to the court clerk where the lawsuit is currently pending.
In most cases, almost every bankruptcy court removes the automatic stay after the confirmation hearing since your creditors are bound by your repayment plan. They are not allowed to sue you or take other legal actions to get advance payments. They should, at all times, abide by what was stated in your plan.
\After a couple of days of filing your bankruptcy petition, the court will then appoint a Chapter 13 trustee in Bankruptcy to supervise your case. You will get a letter from the bankruptcy court, giving the details of the trustee, such as name, contact information, and address, among other things.
Aside from the required tax returns and bank statements, the trustee will send a separate letter outlining which financial documents he or she wants copies of and when he or she wants them. After several days in which the trustee is appointed, the bankruptcy court will send you and the creditors a Notice of Chapter 13 Bankruptcy Case. The notice may contain such as, but are not limited to:
You and your bankruptcy attorney might also obtain an introductory letter from the bankruptcy trustee elucidating the specific procedures. In most cases, the role of a Chapter 13 trustee in Rockville, Maryland is fairly active. Especially in rural judicial or suburban districts, the bankruptcy trustee can:
For more information about the role of the bankruptcy trustee in Chapter 13, see the section below. In filing for Chapter 13 bankruptcy, it is crucial to understand the role of trustee. The bankruptcy laws may be confusing and hard to comprehend, but with the help of a reliable bankruptcy attorney, you will get the best results. Schedule a free appointment now.
In Chapter 13 bankruptcy cases, debtors are allowed to pay all or some of their debts by proposing a 3-5 years repayment plan. The Chapter 13 bankruptcy trustee, as mentioned, will supervise the plan that you have. Other duties of United States trustee includes:
It is one of the prime duties of every bankruptcy trustee to ensure that the debtor’s repayment plan is fair enough for the lender. The trustee will do the following:
The filing of a bankruptcy petition includes your monthly expenses, income, debts, and assets. The trustee will utilize your paycheck stubs, tax returns, bank statements, and other pertinent items that the trustee will find necessary to validate your bankruptcy petition.
After one month following the filing of your bankruptcy case, you are required to attend the meeting of creditors, which the trustee shall administer in Chapter 13. You will answer every question that the trustee will ask under affirmation about the data provided in your bankruptcy plan and paperwork and other relevant documents.
You will be asked about your assets, income, and bankruptcy, among other pertinent questions. Creditors are also given a chance to ask questions. In cases when more documents are needed, the bankruptcy trustee will set another date to continue the meeting.
A creditor or a trustee may possibly find a problem with your repayment plan and make objections to it. In that case, you will need to get approval from the court. You will be given time to correct the mistake or make an objection to affirm your plan. The trustee will participate in the confirmation hearing and advise the judge on whether or not the plan meets the necessary requirements. The judge will then approve or reject the plan.
After you file for Chapter 13 Bankruptcy, you must start making monthly payments within 30 days. Payments are made to the bankruptcy trustee. As soon as the court approves your plan, the trustee will distribute the payment to the respective creditors. The plan for Chapter 13 bankruptcy would take 3-5 years to complete. During that time, the trustee will receive payments and distribute them to creditors in order to complete your plan. The trustee will review each creditor’s proof of claim form and ensure that all payments collected are disbursed to the right creditors.
Each creditor is obliged to file a proof of claim before collecting payments. Within 70 days after the filing date, the proof must be submitted. The amount to be paid, as well as the relevant documentation in the form of an agreement or contract, should be stated in the proof of claim. In Chapter 13, the trustee will assess the creditor claims and, if any are inappropriate or missing, they have the legal right to object. Other parties may object as well.
Understanding the role of the bankruptcy trustee in Chapter 13 in Rockville, Maryland is challenging. This is because bankruptcy laws are naturally complex if you don’t have extensive knowledge of them. However, this should not be a hindrance for you not filing Chapter 13. To solve your debt problems, Chapter 13 bankruptcy is a great legal option.
It is critical that you have all of the answers to all of your questions before filing. If you are still perplexed about the nature of bankruptcy, you should consult with an experienced bankruptcy attorney. You deserve a bankruptcy law firm that strives to provide clients with a successful path to a fresh start. Unmanageable debts can be very frustrating; however, don’t let this prevent you from getting a good night’s sleep. Your debt problems have a solution, Kurland Law Group is the best bankruptcy firm that can help.
Other than Bankruptcy, we also handle Foreclosure Defense and Loan Modifications, Short Sales, Individual/Consumer Services, Asset Protection, Small and Medium-Sized Business, Litigation Services, and Wage Garnishment Options. If you are interested, set a free consultation today!
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