This is one of my most frequently asked questions from a prospective bankruptcy client. When researching bankruptcy, or speaking to people that have filed, you will hear the word ‘trustee’ come up frequently. Who is the trustee?

I have often described Chapter 13 Bankruptcy like a “government sponsored debt consolidation plan”, because that is what it is. In simple terms, the function of a Chapter 13 trustee is to collect funds from debtor(s) and disburse those funds to debtor(s)’s creditors based on an approved plan. Now, the trustee must examine the schedules, and the plan, to make sure the proposed plan complies with all legal requirements under the law. If the plan does not, the Chapter 13 trustee’s job is to object to debtor’s plan until it does.