TRCC
There are many difference processes involved in a Chapter 13 bankruptcy. The newest one is what is commonly called TRCC (Trustee Recommendation Concerning Claims). It is a process that occurs about 6-9 months after confirmation. Since it is still fairly new, there are questions and procedures still be working out by the Trustee’s office and the attorneys.
Confirmation is to occur within 45 days of the original 341 hearing. This usually puts the confirmation anywhere from 3 to 4 months after the case is filed. At this point, the bar date for the proof of claims to be filed hasn’t even passed. Creditors are still filing and amending proof of claims. In the mean time, agreements are being reached between Creditors and Debtors for issues such as the Debtor falling behind on payments to the Creditor. All these issues must be addressed at TRCC.
Depending on the district the case is filed, depends on how the Trustee handles the case. Generally, the Trustee will send out a notice of hearing (which Debtor does not need to attend unless advised to do so by the attorney) and a list of all the claims filed in the case. Amongst the list will include claims the Trustee is objecting to or disallowing and for what reason. The main reason a claim is disallowed is because the Debtor listed on his schedules of Creditors owed, but the Creditor failed to file a proof of claim in the case.
There are also claims that get amended, such as property taxes and mortgage arrears. The Trustee will either do a modification and allow the Debtor’s attorney to object, or require the Debtor’s attorney to file a modification to provide for any additional or amended claims. Also, the Trustee or Debtor’s attorney must be sure to provide for any agreements reached between the Debtor and Creditor between the Confirmation and TRCC. It can be a tricky process if many things have happened in the case, but is an opportunity to make sure everything is correct.
If you would like to find more information about attorneys in your area, such as a bankruptcy lawyer in Minnesota or a bankruptcy attorney in Nebraska, please fill out a free evaluation.
Please fill out our free evaluation form to determine if bankruptcy is right for you.
