What is chapter 13
bankruptcy?
•Chapter 13 bankruptcy is a section of the Bankruptcy Code that gives individuals with a steady income and qualifying debt limits the opportunity to restructure what they owe through a court-approved repayment plan lasting three to five years. After successfully completing the plan, many remaining eligible debts may be eliminated, or discharged.
What is a Chapter 13 Trustee?
•Chapter 13 trustees are appointed by the United States Trustee Program, a division of the United States Department of Justice.
•Each Chapter 13 trustee operates an office with staff responsible for administering Chapter 13 bankruptcy cases. The trustee's office receives payments from debtors according to court-approved repayment plans and distributes those funds to creditors in accordance with the terms of each plan. In addition, the trustee oversees the meeting of creditors, participates in confirmation hearings, and attends other court proceedings related to the case.
•As an impartial administrator, the Chapter 13 trustee does not advocate for either debtors or creditors. Because of this neutral role, neither the trustee nor the staff members in the trustee's office are permitted to provide legal advice to anyone involved in a bankruptcy case.