Disbursing Agent: Should the Debtor Have a Choice?

By Barbara Foley, Chapter 13 Trustee for the Western District of Michigan (Kalamazoo, MI)

When crafting the chapter 13 plan the debtor has a number of decisions to make regarding the plan provisions. All decisions impact the function of the plan and the debtor’s success in the chapter 13, but none more than the choice of disbursing agent. This article will discuss recent case decisions and look at the statutory framework and factual situations which may result in the conflict in the disbursing agent choice. The conclusion reached is, for a variety of reasons, the Standing Chapter . . .

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