What happens if your income [Archive]

lrprn

08-20-2009, 08:06 PM

changes after you file for bankruptcy? What happens if your income changes during the pay-off period?Whether a change in income affects your Ch 13 depends on how significant the change is.

If your income falls suddenly and permanently so you cannot make your Ch 13 payments any longer, then you notify your lawyer immediately. Your lawyer will submit an amended plan that accommodates your change in income. If your income falls enough, you may be able to convert your case to Ch 7.

If your income falls but the fall is temporary, then your lawyer can ask your trustee if you can skip a payment or two until your income returns to your previous level.

If your income increases significantly (like more than 10% at once), then most trustees have told their filers that they expect to be notified about that if it occurs during your Ch 13 plan. Work with your lawyer to sort out if this will be necessary. Even with a big increase in income, often expenses increase as well, so it all could be a wash.



	Bankruptcy Forum > Before the Discharge > Chapter 13 > What happens if your income PDA What happens if your income howdidithappen 08-20-2009, 06:04 PM changes after you file for bankruptcy? What happens if your income changes during the pay-off period? lrprn 08-20-2009, 08:06 PM changes after you file for bankruptcy? What happens if your income changes during the pay-off period?Whether a change in income affects your Ch 13 depends on how significant the change is. If your income falls suddenly and permanently so you cannot make your Ch 13 payments any longer, then you notify your lawyer immediately. Your lawyer will submit an amended plan that accommodates your change in income. If your income falls enough, you may be able to convert your case to Ch 7. If your income falls but the fall is temporary, then your lawyer can ask your trustee if you can skip a payment or two until your income returns to your previous level. If your income increases significantly (like more than 10% at once), then most trustees have told their filers that they expect to be notified about that if it occurs during your Ch 13 plan. Work with your lawyer to sort out if this will be necessary. Even with a big increase in income, often expenses increase as well, so it all could be a wash.