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    #16
    Originally posted by Traders View Post

    Response from attorney:
    An increase in income would not affect you as long as you continue to make your payments and remain a full pay (100% pay).
    With that being said, if you were to ever have a reduction in income which resulted in redoing the budget and lowering the payment, it could create issues. The reason for that is that the Trustee might ask for income information for the previous years to see if you could have paid more in previously. This should only happen if you were to have a change that resulted in us attempting to lower the payment.
    I take that to mean exactly what we tell our Chapter 13 friends here at BKForum. Stay off the Trustee's radar! If your gambling causes you to miss plan payments the Trustee may become curious and start looking at your tax returns and it will be obvious that you are gambling. For now, keep your head low, and please try to address the gambling issue. I was gambling before filing and the Trustee was very curious as to whether it was out of my system.

    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog


    I am not an attorney. Any advice provided is not legal advice.

    Comment


      #17
      Originally posted by justbroke View Post
      As LITR eludes, debtors in 100% plans don't have a problem with turnover of any "windfalls" or winnings because they are already paying back 100%.

      If you were not in a 100% plan, the trustee "may" decide to dismiss your case if you are a.) in jeopardy of not completing your plans, b.) not making your payments, and/or c.) not turning over any extra income. The problem is really to help true gamblers help themselves. The trustee is trying to keep the debtor on tract and adhering to the terms of the confirmation order. My confirmation order did not mention anything about gambling (and I have gambled in the past and disclosed the fact in my statement of financial affairs). My confirmation order did, however, mention disposable income and tax refunds. The real problem is not the gambling, per se, for the Chapter 13 Trustee. The real problem is that any winnings, in excess of losses, should be turned over as "disposable" income immediately.

      That last paragraph doesn't apply to you because you are in a 100% plan.

      (I could not find one Chapter 13 case in my district which was dismissed for gambling. Many were dismissed for not providing disposable income to the trustee or for not paying.)
      Thanks justbroke. I gambled only 6 days in 2018 and have no intention of going back to it.

      The Richardsons' Motion for Partial Summary Judgment is granted since the *803 insurance proceeds, although not exempt property, are not property of the estate. The trustee's objection to discharge is denied insofar as it contends that the insurance proceeds are estate property or projected disposable income. And the trustee has no power to retrieve the insurance monies and is not now entitled to modify the plan.

      A judgment reflecting this ruling will be entered on a separate document in compliance with Fed. R. Bankr.P. 9021 and Fed.R.Civ.P. 58.

      IT IS SO ORDERED.

      Comment


        #18
        It was an interesting case! The interesting part was that the judge didn't side with the Trustee because the judge couldn't determine whether it should be a 100% plan. The part that I quoted, was the real gem hidden. The case has been cited several times with respect to what the Trustee "could" do (and that is motion to dismiss). The kicker was that the Trustee didn't have much ground to stand on with respect to the motion to modify, but the judge opined that the path for the Trustee was just to go for a straight dismissal. Very interesting.
        Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
        Status: (Auto) Discharged and Closed! 5/10
        Visit My BKForum Blog: justbroke's Blog


        I am not an attorney. Any advice provided is not legal advice.

        Comment


          #19
          Originally posted by Traders View Post

          Thanks justbroke. I gambled only 6 days in 2018 and have no intention of going back to it.

          The Richardsons' Motion for Partial Summary Judgment is granted since the *803 insurance proceeds, although not exempt property, are not property of the estate. The trustee's objection to discharge is denied insofar as it contends that the insurance proceeds are estate property or projected disposable income. And the trustee has no power to retrieve the insurance monies and is not now entitled to modify the plan.

          A judgment reflecting this ruling will be entered on a separate document in compliance with Fed. R. Bankr.P. 9021 and Fed.R.Civ.P. 58.

          IT IS SO ORDERED.
          Along the same line, I'm getting a gift from a family member of $40k. I plan to pay $20k to my chapter 13-100% pay, never missed a payment, no chance of losing income. Does anyone see a problem with that?

          Comment


            #20
            Originally posted by Traders View Post
            Along the same line, I'm getting a gift from a family member of $40k. I plan to pay $20k to my chapter 13-100% pay, never missed a payment, no chance of losing income. Does anyone see a problem with that?
            When you are paying off a Chapter 13, the Trustee may want to know where the money is coming from. I don't think that a gift from a family member would be an issue.

            Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
            Status: (Auto) Discharged and Closed! 5/10
            Visit My BKForum Blog: justbroke's Blog


            I am not an attorney. Any advice provided is not legal advice.

            Comment


              #21
              Justbroke...all of my chapter 13 creditors immediately sold my accounts. I'm disputing creditors submitting FP(failed to pay??) on credit reports after the filing date. How do the bureaus respond to this situation?

              Comment


                #22
                Originally posted by Traders View Post
                Justbroke...all of my chapter 13 creditors immediately sold my accounts. I'm disputing creditors submitting FP(failed to pay??) on credit reports after the filing date. How do the bureaus respond to this situation?
                I wish I had a solid answer, but "it depends" is the only answer that I can give you. It depends on whether or not the creditor answers the dispute. It can depend on whether or not the creditor just responds back with "debt sold/transferred to another" (which is the response with some of my credit report items).

                The not-so-funny thing is, that disputing something may lower your score. I disputed an account which was reporting incorrectly and the credit bureau removed the account. My score dropped 20 points. Apparently, an old account (10+ years) was keeping my average age of accounts high, despite it otherwise being negative for 2 years.
                Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
                Status: (Auto) Discharged and Closed! 5/10
                Visit My BKForum Blog: justbroke's Blog


                I am not an attorney. Any advice provided is not legal advice.

                Comment


                  #23
                  So now I'm concerned, I just received my SSDI backpay and went to the casino once a few weeks back and won about $3200. I played for a while and just happened to hit so that means I should let my attorney know? I'm not in a 100% payback, and was told my SSDI is mine? I don't plan on going again it was a last minute decision and was just playing while waiting on my friends. I was issued the 1099. Before my Chapter 13 when I was working I went all the time but stopped after I entered my Chapter 13. Now I'm nervous, should I just stay under the radar or let my attorney know?

                  Comment


                    #24
                    smithma3 yes,your SSDI is yours and exempt. However, you "earned" income by gambling. If the casino reported this on a W-2G (lottery winnings for IRS reporting), then this may show on your 2019 Income Tax Return. How it would affect your case is too fact specific. I would certainly let my attorney know that I had "earned" additional income by gambling.

                    Your attorney will likely tell you to (please) stop gambling... especially while in a Chapter 13. The attorney may also say that $3,200 is not enough to peak the Trustee's curiosity (since it may not be more than 10% of your annual gross income).
                    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
                    Status: (Auto) Discharged and Closed! 5/10
                    Visit My BKForum Blog: justbroke's Blog


                    I am not an attorney. Any advice provided is not legal advice.

                    Comment


                      #25
                      justbroke; thank you!

                      Comment

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