Income...

[VFC]

Just curious- Disposable income is determined by last six months earnings correct???
So, after comfirming a 60 mo.repayment agreement would a wage increase during that 5 years affect your payment plan... ?

[Crainial Access]

good luck in getting a definitive answer here on this specific question.....I am getting both yes and no responses...seems few experience an increase in income after filing...I'll let you know in about 4 weeks after I send in my first 4 paystubs from my new job to my attorney. My salary is going up by about $25,000.00/year....should be interesting...I'll let you know......60 month plan...100% payback to unsecured.....$1008/month currently..1st and second mortgages, student loans paid outside of plan.

[dragonnfly]

That is a subject that seems to be scecific to your trustee. If you are already at 100% payback it wouldn't change but otherwise its up to your individual trustee.

[jwbbx]

Cranial, I'm fast coming to the conclusion that definitive answers don't exist in this arena but it's not the fault of the forum. I've been trying to investigate case law on several topics I've posted about and like you have seen answers all over the place. The one thing I have learned is that case law in the area of BK is all over the place, and the particular Circuit Court you are in will determine the answer for your case.

For instance, in the 6th Circuit (where I am), 401(k) contributions are not allowed. In other Circuits, they are on a case by case basis. These things don't become universal until someone takes them to the Supreme I guess. It's very frustrating but now I understand more why corporations 'select' where they want to file cases when they can. Sure wish I could!

To the OP, my lawyer has told me that our Trustee will ignore small cost of living type raises but will ask for amendments to the plan if big percentages are seen. This of course is with a plan that does not pay back 100%. In a 100% plan what's to increase? Maybe to cover the Trustee's fees? The only other thing an increase would accomplish there is shortening the 60 months (maybe not a bad thing right?)

YMMV

[soleprop]

hmm i don't know, the NOLO books say that the payment arrangement agreement is made based on the income you report at time of BK and it does not change for the remaining time, regardless of your increases in pay. if you get decreased pay, you can request a revised repayment plan or convert to CH7, etc. but the books say nothing about having to pay more if you make more. i'm going to go with 'no way, jose.'

[brokegopher]

I asked the same question and our attorney said "yes." Since we are not on a 100% repayment, we need to give the trustee our tax returns ever year for review. Our payment could be adjusted up if the trustee finds we have more disposable income. But I'm learning fast there are A LOT of gray areas in this system.

- Good Luck

[VFC]

So Far....

hmm i don't know, the NOLO books say that the payment arrangement agreement is made based on the income you report at time of BK and it does not change for the remaining time, regardless of your increases in pay. if you get decreased pay, you can request a revised repayment plan or convert to CH7, etc. but the books say nothing about having to pay more if you make more. i'm going to go with 'no way, jose.'

I like this one best!

[oldrocker]

In the stack of papers our lawyer gave us at our first meeting are two sets of papers from the trustee's office. In the one it says that if our income inreases over 10% we would need to file new scedules showing our new income. What was kinda cool was that the very next sentence said that this would also be a good time to review our scedule of expenses in case any of them have gone up (hint hint). I don't think our trustee likes modifing plans once they are going.

[southerncomfort]

In my district you are supposed to report any increase in income over 10%.

[Crainial Access]

I did not intend to imply that it is any fault of the forum for a lack of a definative answer to this question and as I also stated it appears that no one has gone through a similar experience. I have found the forum to be extremely helpful in many areas. I guess I'm just wishing for the best of all scenarios..........and seeking validation.....nothing wrong with dreaming...whether the plan length gets decreased or they leave my extra income alone .....its all good! My plan allowed me alot of breathing room and this increase if not touched would be even better!