If you choose to file for bankruptcy, you will have a trustee appointed by the Executive Office of the United States Trustee to administer and supervise your case. In Chapter 7 bankruptcy, your case will be concluded quickly, usually within ninety to one hundred and twenty days, but in Chapter 13 bankruptcy, your 3-5 year repayment plan will require a longer period of involvement by the chapter 13 trustee. Because a Chapter 13 case is significantly longer than a Chapter 7 case, the help of a bankruptcy attorney can improve your circumstances. Behm Law Group, Ltd. provides the legal assistance you need when filing for Chapter 13 bankruptcy in Mankato, MN.
The length of Chapter 13 cases often requires specialized skills with those administering the case and overseeing repayment plan. To meet this demand most trustees handling Chapter 13 plans are considered standing trustees.
What are Standing Trustees?
Standing trustees often work strictly on Chapter 13 cases. While it’s possible for a trustee to work with both Chapter 7 and Chapter 13 cases, the courts prefer standing trustees to administer bankruptcy cases involving debt reorganization. This is because it requires a long-term commitment on the trustee’s part, and often requires legal knowledge specific to the Chapter 13 process.
What do they do?
Like any other bankruptcy trustee, a standing trustee will examine the information you provide in the bankruptcy forms and schedules and approve the legitimacy and accuracy of that information. The Chapter 13 trustee will also verify your attendance at the meeting of creditors. Any abuse the trustee detects will be reported to the bankruptcy court and to the United States Trustee. In some situations, a standing trustee can recover any assets that you may have transferred before filing for bankruptcy and the trustee can object to certain exemptions you attempt to claim.
When it comes to your repayment plan, a standing trustee will review your income and expenses to determine an appropriate payment for your repayment plan. When a repayment plan is established, the standing trustee confirms that you will dedicate all of your disposable income to continue making payments until the plan is complete. The trustee will also ensure that the plan will repay the creditors at least as much as they would receive in a hypothetical Chapter 7 case.
Once your Chapter 13 repayment plan is confirmed or approved by the bankruptcy court, the standing trustee will continue to collect your payments and distribute the correct amounts to your various creditors. A standing trustee will monitor your ability to make payments and will request an increase in the plan payment amounts corresponding to any increase in your disposable income. The trustee will also keep an eye out for fraudulent conduct.
A standing trustee works to make sure everything is done by the book and that a Chapter 13 case remains fair for creditors and debtors alike. Behm Law Group, Ltd.
can provide you with expert legal counsel and work with your standing trustee if you choose to file for Chapter 13 bankruptcy in Mankato, MN. For more information, call us at (507) 387-7200 today.