Trustees Personal Bankruptcy Role
Duties in personal bankruptcy and the Trustee's role during 341 meetings
Trustees are appointed in almost all personal bankruptcy cases under Chapter 13. The trustee's duties include the provisions of 11 U.S.C. 1302, which provide a trustee shall:
- appear and be heard at any personal bankruptcy hearing under Chapter 13 that concerns (A) the value of property subject to a lien; (B) confirmation of a plan; or (C) modification of the plan after confirmation;
- dispose of, under regulations issued by the Director of the Administrative Office of the United States Courts, moneys received or to be received in a personal bankruptcy case under chapter XIII of code;
- advise, other than on legal matters, and assist the debtor in performance under the personal bankruptcy plan; and
- ensure that the debtor makes timely payments according to the terms of the personal bankruptcy plan.
After the meeting of the creditors, trustees file reports with presiding judges. This report recommends the court confirm, reject or require modification of proposed personal bankruptcy plans. Debtors who work the trustee and address their concerns usually are able to obtain a recommendation from the trustee, which in turn, results in confirmation by the court. Creditor objections are secondary, and although important, courts are well aware conflicting interests. The trustee's recommendation is essential for confirmation.