Trustee overview for Chapter 13

[Logan]

After a Chapter 13 has been approved what is the trustee's role over the term of the ch. 13?

For example, what if you're renting for $1500 a month and a few months into the plan you find another place for $1000 a month? What if you sell your car?

Logan

[lrprn]

After a Chapter 13 has been approved what is the trustee's role over the term of the ch. 13?

During the life of a Ch 13, the trustee is the administrator of your bankruptcy estate established on the day you file - he/she controls all your assets, all your debts, everything financial.

For example, what if you're renting for $1500 a month and a few months into the plan you find another place for $1000 a month?

Completely depends on the trustee you get and the customs of the bk court district where you file. Some trustees won't care about the decrease in rent and that money would be yours to keep. Others give written instructions to be notified about ANY increase in disposable income and will amend your plan to get that $500. Luck of the draw, I'm afraid.

What if you sell your car?

Since it's an asset of your bankruptcy estate, you must have the trustee's permission beforehand to sell it, period.

[SinkingFast]

The day you file BK, you establish a BK Estate. As Lrprn said, the Trustee is the Administrator of you BK Estate. All assets, property, etc, that you own, come under the control of the Trustee.

If you want to sell a car while in BK, you're gonna have to get permission from the Trustee to do so.

Different Trustees in different Courts have different personal practices.

Some are very lax. Once the Plan is Confirmed, they don't want to be bothered again. You make your payments on time and the Trustee could care less what happens in your life.

Some Trustees are very "Letter of the Law". If you get a pay raise above X%, they wanna know. They want to see your income tax returns every year. You may or may not get to keep a portion of any refund you might get. If you move and your monthly living expenses go down, you'll have to amend your plan and fork over the extra $$$'s each month.

As Lrprn said,............ It is very much luck of the draw.

Definitely something you wanna discuss with attnys as you Consult around. Ask about the Ch 13 Trustee(s) in your Court. Their personalities and their practices. You wanna be prepared for what to expect going in.