Why is the money I am required to give my trustee every month held in an account?
I was told by my trustee that the money is held in an account until I am discharged. At that time, the money that has accumulated will then be dispersed among my creditors. This sounds a bit strange to me, and I just wanted to be sure this is correct.
Yes, that generally is correct.
In the case where there is a considerable amount of money in the file and inspectors are appointed, the inspectors can authorize payment of dividends to creditors.