Bankruptcy Attorney in Phoenix, Arizona
After you file for bankruptcy under Chapter 13 and take care of all pertinent paperwork and documents, the bankruptcy court will proceed to appoint a bankruptcy trustee. Their main task is to administer the bankruptcy case. The bankruptcy trustee, you must note, does not work for you but the creditors. Regardless, hiring a skilled bankruptcy attorney is necessary when filing bankruptcy under Chapter 13.
If you are unsure whether to file for Chapter 13 bankruptcy or not, Phoenix Fresh Start Bankruptcy Attorneys can assist you in making the best decision. We provide affordable legal assistance for overall relief, and our expertise is founded not only on experience but also on providing excellent services, as evidenced by our background reviews. We also assist clients in filing definite bankruptcy forms, including all the salient information for the trustees to review.
If you need help with Chapter 13 bankruptcy, contact our experienced bankruptcy attorney today for a free, no-obligation, stress-free financial analysis!
Why do I Need to Know the Role of Chapter 13 Bankruptcy Trustee in Arizona?
Only a few days after your bankruptcy is completed will the court appoint a Chapter 13 bankruptcy trustee to oversee your case. The court will send you a letter with the appointed trustee’s address, name, email, and phone number. The trustee in Chapter 13 will send a separate letter requesting all financial documents. Furthermore, the trustee will require tax returns and bank statements.
You also need to know that the role of a Chapter 13 bankruptcy trustee in Arizona is that trustees are not your friend. The bankruptcy laws require them to ensure that their creditors receive what is supposed to be paid to them. They will take as much of your funds and distribute them to your creditors. The Chapter 13 trustee may keep the money as payment for their services.
That is why every bankruptcy filer should consult with an experienced and skilled bankruptcy attorney.
The Role of the Bankruptcy Trustee in Chapter 13
When a person files a Chapter 13 bankruptcy petition, a trustee will be appointed by the bankruptcy court to supervise the case. In other districts, however, the trustee appoints a standing trustee to serve in every Chapter 13 bankruptcy case. The trustee in this chapter both assesses the claim and acts as the disbursing agent, which means they collect payments from the debtors and distribute the funds to the creditors.
A bankruptcy filer rarely gets to see the judge. Filers in most bankruptcy cases will interact with the appointed bankruptcy trustee. The latter is in charge of providing additional assurance that you are qualified to file for Chapter 13. Expect the following:
- The trustee will evaluate your bankruptcy forms; and
- Validate your data by comparing the figures stated in your papers to the documents you transmitted.
The schedules and the petition entail information regarding your monthly expenses, regular income, debts, and assets. The bankruptcy trustee will utilize your paycheck stubs, tax returns, and bank statements that your trustee will mandate you to submit for your confirmation of financial disclosures.
The Trustee in Chapter 13 bankruptcy Will Review Your Repayment Plan
Once you propose a repayment plan that outlines your method of repaying the creditors, the trustee will review it in detail. It has to ensure that your arrangement is reasonably fair on your creditors’ part.
In cases where the trustee finds an error with your repayment plan, they will probably resolve the problem informally at the 341 meetings. If you cannot consolidate it via consensus, the trustee will submit a motion before the bankruptcy court to request a resolution.
Creditors are also allowed to raise objections to your plan only by filing a motion. In any of these cases, you have your opportunity to respond before the judge determines the case.
Conducts the 341 Meeting of Creditors
You will be required to attend the Chapter 13 meeting of creditors after a month of filing your bankruptcy petition. At this meeting, you should present identification to prove that you are the legitimate debtor who filed for bankruptcy. The meetings can also be virtual.
At the hearing, you will answer the bankruptcy trustee’s questions and affirm that everything you enunciate is true and nothing but the truth. Questions include, but are not limited to, bankruptcy paperwork, repayment plan, and other pertinent documents.
You should also expect the bankruptcy trustee to question you about the information in your petition and whether or not it is accurate. The trustee will not disregard any other information related to your bankruptcy petition. Creditors, on the other hand, are free to raise concerns.
At the Confirmation Hearing
The bankruptcy trustee will be present at the confirmation hearing and tell the judge whether the plan is feasible, fair, and fulfills the requirements. Based on the background and facts, the judge has the discretion to approve or reject it. If there are only minor mistakes, you may be given another chance to correct them.
Repayment Plan Implementation
After a month of filing your Chapter 13 bankruptcy petition, you should begin sending monthly payments to the bankruptcy trustee in conformity with your proposed repayment plan. Unless and until the court approves your deal, it will remain proposed, and the funds will be held for your creditors by the trustee.
After getting approval from the court, the Chapter 13 trustee will start distributing the money to your creditors under the terms of your repayment plan. If the proposed plan is rejected by the bankruptcy court, you will receive the money you paid to the trustee with some exceptions. If approved, the bankruptcy trustee will collect and send the payments to your creditors for three to five years.
Object to the Creditor’s False Claims
Filing proof of claim is necessary for creditors to receive the funds paid by the debtor. The claim should state the amount owed to them, including all the pertinent documentation. The Chapter 13 trustee will review the creditors’ claims, and if there are errors, they can make objections.
Call our Bankruptcy Attorney Now!
As previously stated, the bankruptcy trustee in Chapter 13 generally is not your friend. They exist to collect funds and distribute them to your creditors to pay what is owed to them. Since this is the situation, it should be clear why you need to seek legal help from an experienced bankruptcy lawyer.
Our substantial experience enables us to provide a high-quality legal service. Our strong dedication is always based on our eagerness to help clients resolve and get rid of their unsecured debts. Financial hardships are indeed inevitable, but hiring an excellent bankruptcy attorney is something that you can voluntarily do. Other than Chapter 13, we also handle concerns under Chapter 7 bankruptcy. Call us for prudent legal advice today!