Chapter 13 bankruptcy in Baltimore is a practical option for reforming one’s finances. It allows debtors to keep their assets as long as they stick to a repayment plan that lasts three to five years. The key to it all is having a bankruptcy trustee who’ll be responsible for managing the case from start to finish.
The trustee in Chapter 13 cases is referred to as the "standing trustee." The said person is either a lawyer or an accountant appointed by the court to serve as an unbiased third party who can make sure the bankruptcy process complies with the law. They are not employed by the debtor or creditors.
Review and Approve the Repayment Plan
The Chapter 13 trustee is responsible for studying a debtor’s repayment plan, which must be submitted within 14 days of filing for bankruptcy. The plan outlines payments the debtor will make to the trustee, who will then distribute the funds to creditors according to the proposed terms.
If the plan does not meet the legal requirements, the trustee may object. If issues arise, the trustee works with the debtor and their attorney to address them. Once the plan is feasible and meets legal standards, it is recommended for approval by the bankruptcy court.
Managing Payments and Distributions
Chapter 13 bankruptcy lawyers in Maryland explain that the trustee acts as the intermediary who ensures that creditors are paid according to the repayment plan’s terms. Priority debts must be paid in full, while unsecured creditors may receive a percentage of what’s owed them. If the debtor falls behind or violates the repayment arrangement, the trustee can address the issue and may even potentially seek dismissal of the proceeding.
Closely Investigate the Debtor’s Proposed Solution
After a debtor files for bankruptcy, the trustee conducts a “341 meeting” where creditors are asked about their financial affairs, assets, debts, and income. The trustee uses this to verify the debtor’s financial disclosures and ensure the proposed repayment plan is achievable.
If the trustee discovers inaccuracies, hidden assets, or fraudulent conduct, the court appointee can investigate further. Objections may be filed, requests for additional documentation may be made, and, in severe cases, the case may be referred to the court for dismissal or conversion to the more severe Chapter 7 bankruptcy.
Ongoing Supervision Until Conclusion
The trustee will remain the overseer of the entire Chapter 13 plan. The attorney or accountant can help adjust the repayment plan to take into account any major changes in the debtor’s finances during the period. This may include a job loss or unforeseen expenses.
Otherwise, the bankruptcy trustee summarizes the payments made and disbursed to creditors in a final report that is filed with the court. With that, the court may dismiss any final qualifying debts and finally conclude the bankruptcy case.
Hope in Tough Times
In conclusion, the standing trustee in a Chapter 13 bankruptcy in Maryland is responsible for ensuring that the debtor's repayment plan is carried out as intended. From examining the original plan to handling payments and resolving any conflicts, the court appointee makes sure that everyone is treated fairly throughout the process.
The bankruptcy trustee serves as a crucial go-between for the debtor, creditors, and the court. The role helps in navigating all parties through the complexities of what can be a sensitive process. For skilled representation of your financial interests, the person to sit down with is Richard Hackerman. Call him at 410-243-8800.
