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

The difference between a debtor in possession and a trustee in Chapter 13 Bankruptcy is an important one. A debtor in possession is the individual who files for bankruptcy under Chapter 13 and is responsible for reorganizing their finances in order to repay their creditors. A trustee, on the other hand, is appointed by the court to administer the bankruptcy. The trustee’s primary role is to maintain control over the debtor’s assets and income and ensure that the creditors receive their payments. The trustee is also responsible for reviewing the debtor’s repayment plan and making sure that it is feasible. The trustee also has the power to object to any proposed changes to the plan that would be detrimental to the creditors. The debtor in possession is responsible for developing the repayment plan, which must be approved by the court. The debtor in possession must make sure that the plan is achievable and realistic. Once the plan is approved by the court, it becomes the legal obligation of the debtor to adhere to it. In addition, the debtor in possession is also responsible for making all payments to creditors on time. In West Virginia, both the debtor in possession and the trustee are subject to the rules and regulations of the court. Both parties must abide by the terms of filing and should work together to come up with a plan that is best for everyone involved. The court also has the power to modify the terms of the plan in the event of a dispute between the debtor and the trustee.

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

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