What We Do
Chapter 13 is a chapter of the bankruptcy code. Individuals with regular income and debts below a statutory level can utilize chapter 13 to reorganize their debts through a bankruptcy plan. The bankruptcy plan generally requires debtors to make payments for three to five years. At the end of the three-to-five-year plan payment period, many debts are forgiven.
Chapter 13 trustee offices are funded by a percentage fee collected from plan payments. The money to pay the trustee’s percentage fee is included in the plan payment.
Chapter 13 trustees administer chapter 13 bankruptcy cases, including:
- Examining the financial affairs of the debtor
- Conducting a meeting of creditors and questioning the debtor about financial affairs and the plan to reorganize
- Making recommendations to the court regarding the debtors' plans and plan payments
- Monitoring the monthly plan payments
- Monitoring the debtors' financial affairs during the bankruptcy
- Providing creditors with information about the debtors' financial condition and the status of the plan
- Reviewing claims filed by creditors
Standing Trustee Pledge of Excellence
Chapter 13 trustees are appointed by the United States Trustee, an officer of the United States Department of Justice.
The United States Trustee Program has developed this pledge of excellence for all chapter 13 trustees:
Standing Trustees are committed to excellence and to providing a high level of trust and service to chapter 13 debtors and creditors. Creditors, debtors, attorneys, judges and others who come into contact with Standing Trustees are entitled to service which adheres to the highest standards of professional, moral and ethical conduct.
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The trustee's office should be open and operating Monday through Friday during regular business hours.
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The trustee should have a system in place to promptly respond in a meaningful manner to inquiries from debtors, creditors, attorneys, and other interested parties.
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If the trustee is not personally available, the trustee should have competent staff available to assist or to respond to inquiries.
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The trustee should work to ensure that debtors comply with their obligations under the Bankruptcy Code and Rules.
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The trustee should work to ensure that debtors comply with the provisions of their plan and should take appropriate action if the debtor fails to commence plan payments when required or if there is a subsequent default in plan performance.
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The trustee should maintain a system which efficiently tracks the progress and the receipts and disbursements in every chapter 13 case, from the time it is filed until the case is closed.
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The trustee should have a system to timely and accurately record all receipts and disbursements on the appropriate debtor ledger.
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The trustee should disburse plan payments to creditors on a monthly basis, and should have procedures in place to properly classify and pay creditors' claims and to detect and recover any erroneous payments.
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The trustee should ensure that all trust account ledgers and accounts are balanced on a monthly basis and should have a procedure to regularly review all cases with significantly large balances on hand or other fund irregularities.The trustee should maintain a reasonably comprehensive system of internal controls over accounting and office operations, both paper and electronic, to safeguard estate assets and trust funds.