Bankruptcy trustees are not supposed to be actively helping either the debtors or creditors. They are supposed to help a debtor comply with the bankruptcy code while making and fulfilling a plan of reorganization. They must also make sure the creditors are receiving what they are supposed to get under the bankruptcy code, and they are supposed to be more of a neutral party making sure the code is being followed.
Call our Chapter 13 bankruptcy attorneys and learn what you can expect when dealing with trustees in New Jersey bankruptcy claims.
A Chapter 13 bankruptcy trustee is essentially the administrator of an estate. Initially, they make sure debtors are complying with the bankruptcy code and meet its requirements. The trustee also collects the payments being made by the debtor under the plan of reorganization, and they then disperse those payments to creditors once the plan is confirmed. When the case is completed, the trustee files their final report so the court can enter the discharge, indicating that the debtor has made all their payments.
The Chapter 13 bankruptcy hearing would be about 30 days after we file. Once we file a case, the trustee always requests copies of six months’ worth of your pay stubs, bank statements, your last two tax returns, and proof of any type of insurance you have. If you own real estate, you must provide proof of value, like an appraisal or market analysis from a realtor, as well as a mortgage statement.
If you are divorced and must pay child support or alimony, they may want a copy of the property settlement agreement to verify that the payments were ordered by a court. There may also be certain other types of requested information on a case-by-case basis.
In a chapter 13 bankruptcy trustee hearing in New Jersey, you will be answering trustees’ questions under penalty of perjury, so it is very important that you do not lie to the trustee or on your bankruptcy petition, because you could be prosecuted for bankruptcy fraud. A trustee will not conduct a hearing in New Jersey if a debtor is represented by a lawyer who is not present. If you have retained us to be your attorney, we must be present during the trustee meeting while you are speaking under oath.
It is possible that a creditor could attend the trustee meeting, referred to as the meeting of creditors. Known creditors get notice that the hearings are going to take place and can attend and ask questions if they so desire, but it is very, very rare that a creditor shows up at a Chapter 13 trustee meeting. Mortgage companies and the IRS, for example, do not show up. In the rare times that it happens, it is usually a family member, ex, colleague, or friend who is owed money. Sometimes they do not understand that they don’t have to show up when they receive the notice of the hearing.
Trustees are not there to help you in your bankruptcy claim, but nor are they there to make things more difficult and aid creditors. Their goal is to simply follow the law and make sure everything is going as planned. If you are filing a Chapter 13 bankruptcy in New Jersey and are dealing with trustees, please call Gillman Capone for a free case evaluation.
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