Deciding to take a major step to address outstanding debt is an important event. Many Louisiana residents struggle financially before choosing to move forward with Chapter 13 bankruptcy in efforts to get their affairs in order. While understanding this type of procedure can be difficult, one aspect that individuals may want to familiarize themselves with is the bankruptcy trustee.
In bankruptcy, the trustee plays an important role by overseeing a person's case. In a Chapter 13 filing, the trustee will ensure that the creditors receive their payments as indicated in the repayment plan. The petitioner will provide payments to the trustee, and the trustee will then administer those payments to the specified creditors. The trustee can also decide whether a creditor has a valid claim against the petitioner.
Though the bankruptcy trustee does not have a direct stake in a person's case, it is important to remember that the trustee is an authority in the case. If a person does not cooperate with his or her bankruptcy trustee, such as by not providing requested information, the trustee may believe that the individual is not following the repayment plan as intended. If so, the case will likely not have beneficial outcomes.
Of course, there are many other aspects to Chapter 13 bankruptcy, and though a trustee will play an important part, this individual is not the only person a bankruptcy petitioner will interact with. When considering this debt relief method, it is wise for Louisiana residents to have help on their side. Bankruptcy attorneys could offer assistance throughout the process while ensuring that parties understand the importance of trustees and of sticking to their repayment plans.