Question about salary increases during ch 13

[cereber0s]

Our company does reviews in March. And I have been notified of a 3% COLA increase (fairly typical where I'm at), and a small 8% merit increase (first one in 5 years). Neither have yet showed up in my paycheck, but should in a few weeks. I am about 11 months in right now, and was recently confirmed a few months back.

My question is when do I have to notify my attorney about the change? Should I do it now? Or wait until I have a pay stub that reflects the change? Is there any impropriety by waiting one or two paychecks, and enjoying the increase before it most likely goes to the trustee? That would be nice, but I would rather not get in trouble.

[jetsfan2010]

From what I was told by my attorney, any increase or decrease needs to be told so they can adjust properly. I have also talked to other ppl that have gone through 13s that said as long as you dont "rock the boat" i.e miss payments, the trustee wont mess with your standard cost of living raises. With gas prices etc going up, its too be expected.

[Kuya]

Each Trustee is different. Mine required pay stubs and copy of tax filing each year. My salary jumped by a huge amount . . . and my trustee did not ever adjust my plan or payments. But I have read about others where the Trustee went after every dime.

[Flamingo]

Whenever you receive a bonus or pay raise, or if you have any other monetary increase or decrease (i.e., job loss, hour reduction) during your Chapter 13, contact your attorney. Your plan may or may not have to be modified. If you don't report any increase in income during your plan years, you risk possible dismissal. Always check with your attorney to be on the safe side.

[minan]

Whether or not the Trustee takes any extra income varies, however you should inform your atty. Our atty states that our Trustee will question anything above 10%. This varies district by district. Lucky you for getting a merit increase. All we got was a meager 2.5% increase despite outstanding performance reviews.

[ABC]

by definition you aren't making anymore money. COLA raises only means your costs to live went up so technically you should have no more excess cash than last year.

[newbie2]

by definition you aren't making anymore money. COLA raises only means your costs to live went up so technically you should have no more excess cash than last year.

Chapter 13 trustees use a different dictionary :-) The OP most certainly needs to run this by his/her attorney.

[cereber0s]

All we got was a meager 2.5% increase despite outstanding performance reviews.

I know what you mean. A few years back we all did an awesome job and only got 1%. So this year was a surprise.