When to report Income/Expense Changes

[valentcm]

Ok, I cannot figure out how to start a new thread.

I have a few questions about a ch 13 .

I have been in a ch 13 repayment plan for 29 months. I am close to halfway through! yay! My questions:
My expenses and income have changed, but so far my payment has not been adjusted. Is that my responsibility to notify my attorney and/or the trustee?
What is considered a change that requires a different payment amount?
Last year I screwed up my tax withholding and owed 1700 dollars to the Feds but did not know what to do with that information, so I just paid it over 6 months. Why is it Ok for them to take a tax refund, but crickets when it comes to owing taxes?
If my payment changes due to increase salary( probably 12% over the 5 years), can I reprepare my expenses and give them the updates?

thanks!
Cathy

[LadyInTheRed]

Ok, I cannot figure out how to start a new thread.

I moved your post to a new thread. To start a new thread, click on any subforum ("Chapter 13", for example), scroll to the bottom of the list of threads and click "post new thread" at the left of the screen.

I have been in a ch 13 repayment plan for 29 months. I am close to halfway through! yay!

Congratulations on getting over the peak! And welcome to BKforum!

My expenses and income have changed, but so far my payment has not been adjusted. Is that my responsibility to notify my attorney and/or the trustee?

Some local rules and confirmation orders require the trustee to be notified of increases of any amount or over a certain amount. If the order confirming your plan is silent, you should contact your attorney anytime you have an increase in income. You should also contact your attorney if you have a significant decrease in income or increase in expenses that will make you unable to make your plan payments. Never contact your trustee unless your attorney tells you to. You can never go wrong contacting your attorney with a question.

What is considered a change that requires a different payment amount?

That is not written in stone.

Last year I screwed up my tax withholding and owed 1700 dollars to the Feds but did not know what to do with that information, so I just paid it over 6 months. Why is it Ok for them to take a tax refund, but crickets when it comes to owing taxes?

Your plan was based on your withholding as set forth in your plan. If you get a refund, then the withholding was too high and the refund is disposable income to which the creditors are entitled. Did your tax liability change since you filed your petition to an extent that significantly reduced your disposable income? If so, you may be able to modify your plan. It is the trustee's job to make sure the creditors get what they are entitled to. If there was a change that is not in your favor, it is not up to the trustee to lower your plan payment. You have to petition to lower your plan payment if it is justified.

If my payment changes due to increase salary( probably 12% over the 5 years), can I reprepare my expenses and give them the updates?

If your salary increases to a point where you must report the increase to the trustee, then any increase in expenses should also be taken into account in determining whether your plan payment should be increased or decreased. From the experiences I have read here, a typical requirement is that an increase in income of over 5% must be reported to the trustee. But, sometimes there is no definitive requirement at all. If you have to send copies of your tax returns to the trustee (not all trustees require that), then your trustee will review the returns and let you and your attorney know if he/she thinks the plan payment should be increased. But, that doesn't necessarily mean you aren't obligated to inform the trustee (via your attorney) of an increase.

The key is to contact your attorney about any increase in income and any significant decrease in disposable income that will jeopardize your ability to make your plan payments.