Ques on Filing Multiple Times

[Johnworker1]

I filed for Ch 7 and was denied. I then filed for Ch 13 and paid 12 months into a plan that was too high for me to afford because of change in living situation. That case was dismissed then we refiled a Ch 13 and paid all 48 months but it was dismissed during the audit because my income increased. Now my attorney is talking about refiling a 100% Ch 13 plan. How do they look at multiple filings? Can it cause me problems?

[newlife13]

I don't know the answer to your question, sorry. But curious if it's common to do an audit at the end of a Chap 13 that looks at income.

[tissa]

Yes all chapter 13s end with an audit that I assume looks at numerous things. If you get more than a 3% raise in income during your chapter 13 and you are not already in a 100% plan I would recommend you talk to your lawyer ahead of time long before the audit.

[justbroke]

I filed for Ch 7 and was denied. I then filed for Ch 13 and paid 12 months into a plan that was too high for me to afford because of change in living situation. That case was dismissed then we refiled a Ch 13 and paid all 48 months but it was dismissed during the audit because my income increased. Now my attorney is talking about refiling a 100% Ch 13 plan. How do they look at multiple filings? Can it cause me problems?

A 100% Chapter 13 is to protect you from creditors that can and will obtain judgements against you and start garnishments (or other processes to recover their money judgement). You don't say when your Chapter 13 was dismissed, but since it was at least 4 years ago (before 2013) you'll have no issue filing a Chapter 7 -- if qualified -- or a Chapter 13.

We hope that you receive a discharge this time!

[newlife13]

Yes all chapter 13s end with an audit that I assume looks at numerous things. If you get more than a 3% raise in income during your chapter 13 and you are not already in a 100% plan I would recommend you talk to your lawyer ahead of time long before the audit.

My atty said he's never had any clients tell him about a raise. And that I don't need to reach out to him unless I get a 10% or more increase in salary or equivalent decrease in expenses.

[justbroke]

My atty said he's never had any clients tell him about a raise. And that I don't need to reach out to him unless I get a 10% or more increase in salary or equivalent decrease in expenses.

The number, 10%, seems to be the number. The concern had been if you received 9% each year during the life of the Chapter 13 causing a 40%+ raise by the end. Some attorney's don't keep track and take them as one time events.

It is also true that most people don't tell the attorney anything, never mind about a raise. They don't even tell their attorney when they're laid off, or lose income or their family unit changes. At least they don't tell the attorney until they missed 3 or more plan payments and the Trustee is seeking a dismissal...

[newlife13]

The number, 10%, seems to be the number. The concern had been if you received 9% each year during the life of the Chapter 13 causing a 40%+ raise by the end. Some attorney's don't keep track and take them as one time events.

It is also true that most people don't tell the attorney anything, never mind about a raise. They don't even tell their attorney when they're laid off, or lose income or their family unit changes. At least they don't tell the attorney until they missed 3 or more plan payments and the Trustee is seeking a dismissal...

True. But you do raise a good point. What if I *do* get an 8% raise this year and then a 3% raise in two years. Should I have to report that?

[justbroke]

True. But you do raise a good point. What if I *do* get an 8% raise this year and then a 3% raise in two years. Should I have to report that?

I lean on the side of following my attorney's advice (in my case, it was my own advice). I would simply notify the attorney "if" you go over the 10% amount in a single year. If you are concerned that it may add up over time, I would contact the attorney and simply tell them that you had... 11% in pay increases over the past 2 years. They'll probably say thanks and just keep paying. If you received 9% for 4 years, that "could" make a difference. It's so Trustee/District specific that I will always encourage people to take the conservative view and notify their attorney.

[newlife13]

I lean on the side of following my attorney's advice (in my case, it was my own advice). I would simply notify the attorney "if" you go over the 10% amount in a single year. If you are concerned that it may add up over time, I would contact the attorney and simply tell them that you had... 11% in pay increases over the past 2 years. They'll probably say thanks and just keep paying. If you received 9% for 4 years, that "could" make a difference. It's so Trustee/District specific that I will always encourage people to take the conservative view and notify their attorney.

Thanks for the explanation. I want to have as much money in my pocket as possible, but I also DO NOT want to do anything to jeopardize my discharge!

[underh20]

True. But you do raise a good point. What if I *do* get an 8% raise this year and then a 3% raise in two years. Should I have to report that?

Agree with the 10% as the magic number. I did notify my attorney of my yearly increases that ranges from 5%-8%. My attorney said as long as you don't go over the 10%, I'm fine. if you are required by the court to send annual tax returns to the trustee, then it is considered a form of notice to the trustee.