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Chapter 13 plan will not fulfill confirmation agreement.

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    Chapter 13 plan will not fulfill confirmation agreement.

    Hi all,

    My plan agreement states that I'll hand over any tax returns & for 2021, 2022, 2023 (3 Year Plan), along with bonuses. I have been consistently making the payments & trying to pay extra money so I don't owe the IRS, but the W-4 calculator states that I'll owe $1000 at the end of this year due to my salary increase and filing Single.

    My pay didn't necessarily increase, but I do however have the very rare option to work overtime when someone needs coverage. This'll put me in the $70,000 range when the plan my Lawyer came up with only has me making around $60,000-65,000.

    My question is, what's the likelihood of my plan surviving if I owe the IRS $1000.00? Also should I avoid working overtime from here on out due to this scenario.

    #2
    If you owe $1000 in taxes, just pay it and it will be fine. They don't want to throw people out of cases for minor problems like this. The trustee doesn't make money unless you succeed.

    10% annual increased income seems to be the cushion with most trustees without any plan modification requested by the trustee. You can manipulate your income to stay under 10% with a 401k contribution which is really a wage deferral program. You should ask your lawyer this question about working overtime. My lawyer never had a case where the trustee wanted to increase plan payment due to increased income so it varies. One local trustee tries to catch it with a plan provision that requires notification of any new jobs since job hopping is a much better way to increase income vs. staying with the current employer.

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      #3
      flashoflight Thank you for all of that information. I really appreciate you taking the time.

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