Texas Bankruptcy Attorney: TRCC is an acronym for Trustee’s Recommendation Concerning Claims. TRCC is the point in a Chapter 13 case when the trustee reviews the claims filed by creditors, decides if objections to claims should be filed, and determines if the confirmed plan is sufficient to pay all allowed claims. To understand TRCC it is helpful to understand the events leading up to it.
When a Chapter 13 case is filed the debtor files schedules that list his creditors, as well as a plan to repay these creditors. In the plan the debtor estimates what he believes he owes to his creditors. The trustee and the creditors review the plan and based upon what they find they may or may not file an objection to confirmation of the plan. Confirmation is when a judge signs an order stating that all creditors in the plan are bound by its terms. Since this affects their ability to get paid, creditors and the trustee sometimes object to the plan in a document called an Objection to Confirmation. Once all of the objections are resolved, either by agreement or by a hearing in front of the judge, assuming all other requirements for confirmation have been met, the plan is confirmed.
Creditors don’t get paid simply because they are listed in the plan. They are required to file a proof of claim. A proof of claim is a document establishing what they are owed and why. The deadline to file a proof of claim is 90 days after the first setting of the 341 meeting of creditors for secured and unsecured creditors and 180 days after the bankruptcy filing date for governmental units. The deadline to file a proof of claim is called the claim bar date. A Chapter 13 plan is usually confirmed before the claim bar date has passed. This can create a problem because the debtor estimates how much he owes his creditors in the original plan and sometimes he estimates too low.
During TRCC the trustee reconciles the actual claims filed by the creditors and the amount provided in the Chapter 13 Plan. If the amount provided in the plan is not enough to pay the allowed claims, then the debtor may be required to modify his plan to increase the amount paid during the remaining months. If the claims come in lower the debtor may be able to modify his plan to lower the plan payment or reduce the number of months he is in bankruptcy.
Leave a Reply