Letter from Trustee

[cso5@]

Oy. The mail that strikes fear in my heart arrived today -- a letter from the Trustee.

This year, he wants to see my tax returns, and the letter says any refund greater than $1,500 he will take.

The letter also states that the tax returns will be used to determine substantial changes in income or expenses.

Anybody care to guess how much will be considered a "substantial" change in income? I filed my bankruptcy in 2006. I just did a quick recalculation of Schedule I, comparing the figures I filed with to my current figures, and my net income has increased $105. Do you think this will be viewed as a substantial increase?

Anyone else get a letter like this? I did not get such a letter like this last year -- I filed in April of 2006, so tax season for that year had passed. But I did not get a letter to show my returns in 2007. Guess 2008 is my lucky year.

[wayne-o]

I never got that "feared" letter, but in my district I seem to recall substantial to be 5% or more increase.

[rrockinggramma]

your income increased 105.00 for the entire year? I wouldn't even worry about that with the trustee.

[cso5@]

Nope, it's a $105 increase per month. So that is like $1,264 per year.

I can post the amounts from Schedule I:

Schedule I

Then Now
Wages 3670 3732.75
Payroll Taxes and Social Security:
-620 -790.32
Insurance
-188 -203.68
Other: Auto / Home Ins
-142 -230.66
Parking -38 -18.26
Wellness -16 -16

Support 840 1137.50

Total Monthly Income
3506 3611.33 Monthly Increase 105.33
Annual Increase 1263.96

What do you think? It's an increase of 3%, if you just look at income. Less if you look at income and expenses.

[doglover]

what district are you in?

[woeisme]

Can you show that your expenses have also increased? I'm guessing just about anyone who works with any type of commute is spending close to $105 more a month on gas. Remember that the cost of living is increasing at the same time as your pay, maybe food is more expensive (milk is as expensive per gallon as gasoline these days!) or utilities, etc. Just prepare yourself to make the case that while your take-home is higher, so are other costs, and you should be able to do ok. And change your withholdings on your W-2s so you make sure you don't get over $1500 in tax return next year, if you haven't done so already. Good luck!

[Minnymouth]

Usually a trustee is not interested in any increase of pay unless its 10% or more, due to the cost of living raising each year. Your expenses would offset any increase you would get in pay.....

Just answer his questions, and you'll probably hear nothing else from him.......

[2ndChanceTx]

I agree with Minny!