Chapter 13 bankruptcy is a powerful tool that can help individuals who are struggling with unmanageable debts to regain control of their finances and get a fresh start. However, filing for Chapter 13 bankruptcy means entering into a complex legal process that involves working with a bankruptcy trustee.
Many people wonder if the trustee will monitor their income during the bankruptcy process and what happens if they can no longer keep making payments under the repayment plan. If you are considering filing for bankruptcy or have already filed and need legal guidance, contact the Law Offices of Melanie Tavare.
Our Oakland Chapter 13 bankruptcy attorney Melanie Tavare can help you understand what to expect after you file and advise you on how to make your payment plan work.
Once you file for Chapter 13 bankruptcy, a trustee will be assigned to your case. The trustee’s role is to review your bankruptcy petition, collect your assets, and create a repayment plan that outlines how much you will pay your creditors over a set period of time. You will also be required to attend a meeting of creditors, where the trustee will review your case and ask you questions about your finances. After the meeting of creditors, you will be expected to make regular payments to the trustee, who will distribute those payments to your creditors according to the terms of your plan.
A bankruptcy trustee is an impartial third party appointed by the court to oversee your Chapter 13 bankruptcy case. The trustee is responsible for collecting and managing your assets, reviewing your repayment plan, and making sure that you follow the terms of your bankruptcy plan, according to the official website of the United States Bankruptcy Court. The trustee has the power to object to your repayment plan if they believe that it does not meet the requirements of the bankruptcy code or if they believe that you are not making a good faith effort to repay your debts.
A bankruptcy trustee will usually not monitor your income during Chapter 13 bankruptcy. However, when necessary, the trustee can review your income and expenses to ensure that you are making all required payments under your repayment plan. If your income changes during the course of your bankruptcy, you will need to notify the trustee so that they can modify your repayment plan accordingly. The trustee may also review your tax returns and other financial documents to make sure that you are reporting all of your income and expenses accurately.
If you cannot keep making payments under your Chapter 13 bankruptcy plan, the trustee may file a motion to dismiss your case. Alternatively, the trustee may propose modifications to your plan that better fit your current financial situation. If you have experienced a significant change in income or expenses, you should notify your bankruptcy attorney and the trustee immediately so that they can help you navigate your options.
Chapter 13 bankruptcy can be an effective tool if you are seeking to regain control of your finances. However, you need to understand what happens if you cannot keep making payments under the plan or if your income changes over time. Get the guidance you need from our bankruptcy attorney at the Law Offices of Melanie Tavare. Get a case review by calling 510-255-4646.
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