Bankruptcy Trustee in Jackson, MS
You may wonder if Chapter 13 bankruptcy in Mississippi is your best option for debt relief. Bankruptcy is a common form of debt relief. Chapter 13 bankruptcy is designed for individuals who can afford to repay a portion of their debts but require assistance restructuring them into an affordable repayment plan. Debtors (the individuals who file for Chapter 13 bankruptcy) propose a plan to repay some or all of their debts as part of the process. Chapter 13 bankruptcy is a three to five-year plan (with the exception of a 100 percent plan).
At The Rollins Law Firm, we are seasoned, Jackson, Mississippi-based bankruptcy attorneys who focus on Bankruptcy Trustee concerns and provide prompt legal action. For more information, please schedule a free initial consultation with us to discuss your legal options.
Why do I need a Bankruptcy Trustee in Jackson, MS?
A trustee is a person who administers property (such as business assets) held in trust. A trustee’s fiduciary duty is to administer the property impartially for the benefit of an individual or business. A bankruptcy trustee is a type of trustee who supervises a bankruptcy proceeding.
The U.S. Trustee Program of the Department of Justice selects bankruptcy trustees, who are private individuals with expertise in business, accounting, management, and bankruptcy-related legal issues. According to the Trustee program, a trustee is the “watchdog over the bankruptcy process.”
Depending on the type of bankruptcy, the Trustee Program appoints a trustee to manage the case and the assets when someone files for bankruptcy. The trustee oversees the bankruptcy parties’ actions and ensures that the process is conducted in accordance with applicable laws and the types of bankruptcy.
A fee is paid to the trustee for administering the bankruptcy. Depending on the type of bankruptcy, the trustee may also be compensated for reasonable expenses and their services.
What is the role of a Chapter 13 Bankruptcy Trustee?
A Chapter 13 bankruptcy reorganizes your debt by allowing you to repay creditors in installments over a three to five-year period. The trustee appointed to your Chapter 13 bankruptcy case oversees the administration of the plan.
Among the numerous responsibilities of the trustee are:
- reviewing the bankruptcy documentation
- evaluating the compliance of the proposed plan with bankruptcy laws
- accumulating plan payments and distributing funds to creditors,
- in all other respects adhering to the terms of the Chapter 13 plan.
Examining the Petition and Repayment Plan for Chapter 13
Your proposed repayment plan describes how you intend to repay some or all of your creditors. A trustee’s responsibilities include ensuring that your Chapter 13 repayment plan is fair to your creditors.
The trustee in bankruptcy begins by:
- reviewing the official bankruptcy forms submitted at the outset of the case,
- confirming your information by comparing the figures on the official forms with the documents you will send to the trustee shortly after filing.
The petition and schedules detail your income, monthly expenses, assets, and liabilities. The trustee will verify your financial disclosures using your tax returns, pay stubs, bank statements, and any other documents required by your particular trustee.
Conducting the Chapter 13 Creditors’ Meeting
After filing your case, you will attend a meeting of creditors administered by the Chapter 13 trustee approximately one month later. You will answer under oath the trustee’s questions under oath regarding the information in your bankruptcy paperwork, plan, and supporting documents.
You can anticipate being asked about your income, assets, and any other information pertinent to your bankruptcy. Your creditors will also be able to submit questions.
If additional documentation is necessary, the trustee will reschedule the meeting. If not, the trustee will adjourn the meeting.
Attending the Hearing for Confirmation
A trustee (or creditor) could object to the confirmation of your plan if he or she finds a problem with it (court approval). You will have a limited amount of time to correct the issue or draft an opposition to the plan.
The trustee will attend the confirmation hearing and inform the judge of his or her opinion regarding the plan’s viability (meets all requirements). The judge will determine whether or not to confirm (approve) the plan.
Managing the Bankruptcy Repayment Program
Within 30 days of filing your Chapter 13 petition, you are required to begin sending monthly payments to the trustee in accordance with your proposed repayment plan. Your repayment plan remains proposed until the court approves it, and the trustee holds the funds in trust for your creditors. After court approval, the Chapter 13 trustee begins distributing funds to creditors in accordance with the terms of the plan.
Three to five years are required to complete a Chapter 13 plan. Until you complete the plan, the trustee will continue to receive your payments and distribute them to your creditors. The trustee must assess the proof of claim forms submitted by each creditor and maintain a record of all funds received and the amount paid to each creditor.
Chapter 13 Objections to Improper Creditor Claims
In order to receive Chapter 13 funds, creditors must file a proof of claim with the court within seventy days of the case’s filing date (government creditors have 180 days). The proof of claim includes documentation in the form of a contract or agreement stating the amount owed to the creditor.
The Chapter 13 trustee examines the creditor claims and objects to claims that are improperly filed or lack the proper documentation. Other parties may also object. Read Objecting to a Proof of Claim in Bankruptcy for more information.
Call our Bankruptcy Attorneys Now!
It is important to remember that filing for bankruptcy is a painful and challenging process. If you are thinking about filing for bankruptcy then you need to collect a lot of information. One of the most important things you will need to collect is the bankruptcy lawyers’ contact information.
Our bankruptcy lawyers have assisted hundreds of individuals, families, and business owners in Mississippi in resolving their debts through Chapter 13 and other debt-relief strategies. By focusing on bankruptcy, The Rollins Law Firm can provide you with the assistance you need to fulfill your plan’s obligations. Call us for more information about the benefits of bankruptcy and honest free legal advice.
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