What is the difference between a debtor in possession and a trustee in Chapter 13 Bankruptcy?

In California, a Chapter 13 Bankruptcy is a form of debt relief that can help individuals who have a regular income. It allows them to keep their assets while they reorganize and pay off their existing debts. There are two main roles involved in a Chapter 13 Bankruptcy case: the debtor in possession and the trustee. The debtor in possession is the person filing for bankruptcy protection and is responsible for managing the reorganization of their debts. The debtor in possession will create a repayment plan and submit it to the court for approval. The debtor in possession is also responsible for making payments to creditors according to the repayment plan. A trustee in a Chapter 13 Bankruptcy case is the individual appointed by the court to oversee the process of paying creditors and ensuring the repayment plan is followed. The trustee’s main job is to administer the repayment plan approved by the court and make sure all creditors receive their payments in accordance with the plan. The trustee might also review the repayment plan and suggest changes if needed. The difference between a debtor in possession and a trustee in Chapter 13 Bankruptcy is that the debtor in possession is responsible for creating and submitting the repayment plan to the court for approval, while the trustee is responsible for administering the repayment plan and ensuring all creditors receive their payments in accordance with the plan.

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What is the difference between a debtor in possession and a trustee in Chapter 13 Bankruptcy?

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