Bankruptcy Trustee Payments and Fighting the Good Fight

July 28, 2010 - PRLog -- When people file a chapter 13 case, they have payments that are being made to the trustee. Many complain because of the payments increase at some point in the bankruptcy. Debtors don’t have a large understanding of why this happens. The reason is because they have not been educated enough about the process.

There are many reasons why payments will increase to the trustee. One of the main reasons is that the payments that we figure for you are preliminary. This means that they are not set in stone. The information that is provided for on the preliminary plan is just that, preliminary. After the case is filed, creditors have the opportunity to file proof of claims. One major issue that arises is the mortgage company proof of claims. Most times their proof of claim will come back higher than what we have listed on the preliminary plan, so at confirmation, about 3 months from the date that the case is filed, the creditor can file an objection to have the full proof of claim provided for. In most cases, the payment won’t increase until month 11 or month 12, to allow you some time to make adjustments.

We try our best to make your plan reflect as accurately as possible, but there are things that come up that will cause the payments to increase. At any time you have questions about your payment, contact your attorney’s office immediately.

There are times that clients feel their representation in their bankruptcy case is less than adequate. This may involve instances with a client’s mortgage company, car creditor, or any other creditor that the client feels is being unjust and their attorney is not taking care of their needs with respect to the particular creditor or creditors.

There are some attorneys who will take the road less traveled and file a bankruptcy case for an individual promising them relief without taking the time to actually handle the case appropriately. Clients then may find themselves paying more for something that they did not anticipate, or being forced into a position they cannot handle.

As attorneys in bankruptcy, it is our job to provide the buffer between the client and the creditor and to ultimately provide the relief to the client that they needed and continue to need during and sometimes after a case is completed. Although some attorneys look only to collect the “upfront” fee and then hand the case over to their assistants to handle, this can cause problems with the attorney-client relationship.

Therefore, if filing a bankruptcy case, you want to stay in contact with your attorney and develop a relationship. Some clients may not even know what is happening in their case because they lose contact with their attorney and things may be happening that they are unaware of. Like attorneys, clients have a duty to be proactive in their case.

Bankruptcy is a tricky area of law that if not handled appropriately can cost more to the client than what originally intended. Therefore, be sure to reach out and keep the lines of communication open. You may find that your attorney is the only person that you can rely on through the process.

For more information visit http://www.bankrupcy-alternative.com/bankruptcy-limitatio... or call us directly. Here is another bankruptcy article http://www.prlog.org/10822850-bankruptcy-financial-record... and here is another http://www.prlog.org/10820375-bankruptcy-motion-to-avoid-... for your reading enjoyment.

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