After you’ve filed a Chapter 13 petition, the Chapter 13 trustee reviews all the filed schedules and other documents to make sure they comply with the Bankruptcy Code.
Supervision by the Chapter 13 Trustee
Unlike a Chapter 7 case, you have much more interaction with the Chapter 13 trustee. All plan payments are made directly to the trustee and most of your future income is subject to the trustee’s supervision.
Plan payments are sent to the trustee be either a cashier’s check or money order. You can also elect to have your monthly payment deducted from your paychecks. From this amount, the trustee pays all creditors who have submitted proofs of claim. Claims are paid in order of priority, with certain claims such as for administration of your plan, being paid first.
Once or twice a year, the trustee will send you a report of all money received and paid out. You can also find this information on the trustee’s website—you need to log in with your social security number and case number.
Trustee Objections to filed Plan
The trustee almost always makes objections to filed petitions, so don’t be surprised to receive formal “objections to plan” in your mailbox. Many are routine and are handled by your attorney.
If you want to incur new debt or sell or refinance property after your plan has been filed, the Chapter 13 trustee will be involved. Your attorney files a motion with the court, with notice to the trustee. The trustee advises the court about the status of your case and can file an objection to a proposed transaction.
Because the trustee has extensive experience, the court usually respects the trustee’s opinion on your case.
