Just need to know

[suzyqpug]

When you finally get confirmed and you have your 341 meeting and they give you the amount that you will be paying per month, will they raise your payments at all through out the plan? or does it stay at the same amount until you finish the plan? Like if you get a raise the following year will they raise your payment?

[MajorMike]

The general rule is 10 percent. If your pay goes up by that, you must notify the trustee and yes, your payment could go up.

[suzyqpug]

do you mean if my hubby gets a 10% raise? Cause that would be a really really good raise nowadays.

[liz417]

Suzy,

They only raise the payments if you income goes up, say 10% (varies on the trustees). Some trustees ask for yearly tax return paperwork, so that's how they'll know if there's an increase in pay. I've read that some trustees don't ever ask for tax returns! With some many BK filings, I wonder how the trustees have the time to look over everyone's tax records? Hopefully you'll get one of those trustees My hubby and I were told that we would have to turn over his bonuses for the next 5 years....

Good Luck!

~Liz

[suzyqpug]

Liz - My hubbys bonus ranges last year it was 48,000.00. If i get put on a 5 year plan shich i am sure i will cause he makes 116,000.00 per year, i will be paying back more then i owe. Could that be right?

[BK2008]

I'd think they would have to adjust that figure to match the debt.

[Flamingo]

There is no such thing as a 10% rule as to an increasein income during your CHapter 13. Your attorney will correctly advise you as to what is required as to your Plan. Note some Trustees can make you require to report every change in income; whether raise or bonus or if you change jobs and get paid more. If your income decreases, they will also want to know that. Either way, your Plan can be modified because your disposable income either increases or decreases and it is the trustee's job to ensure creditors get more money if your income or assets increase.

[treehugger1]

And, the thing about this that I learned when I first met with attorneys is that if your income goes up, the trustee can work toward making an adjustment based on information (income tax records, etc.) However, if your income goes down, it is your responsibility to ask for redress and modify the plan. In my district if the filer requests a modification there is a fee associated. One has to agree that this is amusing, but not unexpected. If income goes up and the trustee catches it, then payments could go up. If income goes down, then it is YOUR responsiblity to file for a modification. LOL

[rrockinggramma]

If you are in a 100 percent pay back plan you need to remember 2 things.

1. Not all creditors will file a claim. No claim, no pay to them, discharged at the end. Can only file on principal, not interest accruing etc

2. You will only pay until you meet the 100 percent of the claims filed. The court will NOT make you pay more than that. So you could be done in a much shorted time frame than many of us here.