Question about raises for those in Ch. 13

[Help!]

Not in a 13 yet, but our 7 is definitely off the table. When you're in a Ch. 13, how often do you interact with the trustee once a budget is established and you are making timely payments? What happens if you receive a raise or bonus?

[Minnymouth]

Once your payment plan is confirmed you will have very little contact with anyone except making your monthly payments to the Trustee.....

In Chapter 13 IF you receive a substantial pay raise, inheritance, windfall, win the lotto, etc, you are required to report this extra income to the Trustee.....

If you are in a 100% payback plan, your increase in income will not make a difference except maybe where unsecured creditors are concerned.

All additional and new income must be report while in a Chapter 13.....

[kmb]

We haven't heard anything from our Trustee since we were confirmed. We make our payments monthly and he leaves us alone.

DH actually changed jobs a few months ago and called our attorney to find out what needed to be done since he received a pay increase. Our attorney told us that we did NOT need to let the Trustee know this--the only thing we are required to report is if our address changes. I did check the Trustee's website, and there is also no mention of having to notify him if your income changes.

Might be different rules in different parts of the country.

[Help!]

Thanks Minny. Is there a certain amount of time you have to report the change in income (e.g., 30 days) or just ASAP? Does it have to go through an attorney or is it possible to communicate directly with the trustee in a 13?

[laurannm]

Is this something that can possibly vary from trustee to trustee? In our area anyways we were told by each attorney we consulted with that we wouldn't have to report any additional income to the trustee, and as long as we made our payments on time the trustee wouldn't bother us.

I've also read on some posts here that some trustees follow the 10% rule...only need to report additional income if it is 10% or more.

[Flamingo]

We haven't heard anything from our Trustee since we were confirmed. We make our payments monthly and he leaves us alone.

DH actually changed jobs a few months ago and called our attorney to find out what needed to be done since he received a pay increase. Our attorney told us that we did NOT need to let the Trustee know this--the only thing we are required to report is if our address changes. I did check the Trustee's website, and there is also no mention of having to notify him if your income changes.

Might be different rules in different parts of the country.

I am not addressing the above poster directly but to any poster reading ths as to additional income/funds during a Chapter 13. Income increases, inheritances and other extra income during a Chapter 13 has been heavily discussed in this forum. No one's plan is the same; not everyone has to report every extra cent that comes in. The best thing for anyone to do when confronted with any income increase or any additional funds that come in during your Plan is to contact your attorney as to what, if anything, needs to be done as to your particular matter. While many folks have to report everything and turn in tax return copies each year many do not. What happens to one person may not happen to you. Don't think that because one poster on here does not have to report anything that you do not. Don't play games with a Chapter 13 Plan - check with your attorney - that is why you paid him/her to represent you and get you sucessfully through your Plan.

[Help!]

Thanks everyone for replying! I love this forum. When I first came here I felt so hopeless , but knowing that there are people to turn to who have been through it all helps me get through each day. God bless *all* of you.

[Crainial Access]

I am in a Chapt 13 with 100% to unsecured. My confirmed plan states I have to report to the trustee any funds greater than $2500.00 other than monthly work income. My lawyer sent me a letter after my recent job change stating I have to send him 4 paystubs from my new job and any salary increase over 10% has to be reported to the trustee. I'll let you know how this all works out.

[tylermom]

I am currently in a chapter 13 and there is a good possibility that my husband might get a promotion at his job, perfect timing since we just got confirmed January, 08, anyway he currently works a full time job and a part time job. The part time job pays $5,300. gross annually. The promotion would be a $10,000. raise at his full time job. This would enable my husband to quit his part time job so in reality it would be about a $5,000 raise. I usually receive a 4% raise annually, but by the time my employer raises my portion of health insurance it's about a 3.5% raise. Anyway I have looked over my order confirming our plan and the trustees handbook and no where in either one does it say if we receive any kind of a raise that we need to report it to the trustee. However, it does say that we must submit copies of our federal and state tax returns annually. Our attorney had originally told us that anything over 10% a year would cause the trustee to possibly look into raising our payment. The way I am figuring this is with husband's raise and my raise and husband quitting part time job that both raises together should be 8.5%. I really hope this does not raise any flags. I just wanted to know what anyone here thought. Since it doesn't say anything in my paperwork about reporting raises am I safe to assume I do not need to? Also with the prices of gas and food going up surely that would be something the trustees will take into consideration. When we originally submitted our budget gas was no more than $3.00 a gallon and I think it's safe to say we will never see those prices again. I do not mean to sound anal and I apologize for my post being so long, hopefully I am worrying for nothing. In all reality if we have to pay more than we will but the idea of "opening" our case up and going through all the stress of being confirmed again quite frankly scares the heck out of me. Again any thoughts would be appreciated. This board has been such a savior to me. I only wish I would have found it before we started any of this journey. It would have saved alot of worrying, etc.

[Flamingo]

I am currently in a chapter 13 and there is a good possibility that my husband might get a promotion at his job, perfect timing since we just got confirmed January, 08, anyway he currently works a full time job and a part time job. The part time job pays $5,300. gross annually. The promotion would be a $10,000. raise at his full time job. This would enable my husband to quit his part time job so in reality it would be about a $5,000 raise. I usually receive a 4% raise annually, but by the time my employer raises my portion of health insurance it's about a 3.5% raise. Anyway I have looked over my order confirming our plan and the trustees handbook and no where in either one does it say if we receive any kind of a raise that we need to report it to the trustee. However, it does say that we must submit copies of our federal and state tax returns annually. Our attorney had originally told us that anything over 10% a year would cause the trustee to possibly look into raising our payment. The way I am figuring this is with husband's raise and my raise and husband quitting part time job that both raises together should be 8.5%. I really hope this does not raise any flags. I just wanted to know what anyone here thought. Since it doesn't say anything in my paperwork about reporting raises am I safe to assume I do not need to? Also with the prices of gas and food going up surely that would be something the trustees will take into consideration. When we originally submitted our budget gas was no more than $3.00 a gallon and I think it's safe to say we will never see those prices again. I do not mean to sound anal and I apologize for my post being so long, hopefully I am worrying for nothing. In all reality if we have to pay more than we will but the idea of "opening" our case up and going through all the stress of being confirmed again quite frankly scares the heck out of me. Again any thoughts would be appreciated. This board has been such a savior to me. I only wish I would have found it before we started any of this journey. It would have saved alot of worrying, etc.

Don't second guess anything when it comes to your Chapter 13 Plan and never "assume anything." Assumptions can end up with a Plan dismissal which no one in a Chapter 13 wants to happen. Call your attorney, explain your situation as to the income and your concerns, instead of worrying what "might" happen when the Trustee gets your tax returns. More than likely there will be no problems or issues, but when there is any change in your income or funds coming into your household that makes your Plan fluctuate, advise your attorney. Again, just because someone has to report additional funds over a certain percentage does not mean you will have to, etc., etc., as I state above in a previous posting.

This forum has excellent advice but it also shows the differences in Chapter 13 Plans which can cause confusion among filers thinking they may or may not have to do something; no Chapter 13 Plan is "cookie cutter." They are all different and require different things. What a lot of people fail to realize is that during the course of your Plan from start to finish, your finances and their control belong to the Trustee. There are many things one cannot do without Trustee permission and many things that need to be reported.

As to the rise in gas prices; since gas prices may or may not fluctuate, I don't know if Trustees will take the rise in gas prices into consideration. If the amount truly affects the payments you need to make to your Plan, discuss with your attorney who can possibly look into modifying your Plan if there are issues with increasing costs for you.

[tylermom]

Thank you Flamingo for your quick response. If he does receive a promotion I will let my attorney know the minute it happens and we know for sure what the increase will be. While I want my husband to "move up the ladder" in his profession, it just sucks as far as the timing goes but oh well, could be worse.