chapter 13 overtime

[glc4122]

yes, i have a question about chap 13. after filing chap 13 and a set amount is needed to be payed back. if you work overtime is there a set amount that the trustee will go after to make your payments go higher

[HHM]

Generally no. Most trustees do not nit-pick after your plan is confirmed. If the trustee audits your tax returns and sees more than a 10-20% increase in annual income from the amount you showed on your petition, then the trustee may force you to amend your plan. But if you are talking about occasional overtime, it should not be a problem.

[Mom2one]

We are in this position as well. We will be most likely a 13 filingin the Fall. We are waiting to file now, to have some overtime fall off, as my husbands overtime has been drastically cut. He is afraid if the overtime comes back after we file that he won't be able to work it, as we are afraid of our payment going up. Its so confusing!

Christine

[rrockinggramma]

I know that much has been made here about the "10 percent rule" and all trustee's are different. Some are laid back and some are tyrants etc. However, if you file and the overtime comes back, go for it. You need to live too. A chapter 13 is about reorganization of one's debts not keeping you in fear of every move. If the trustee wants to go to all the trouble of raising your payments over the overtime on your tax return, then so be it. Compromise on it and go forward. Has anyone on here actually had a trustee come after them because their tax return showed a couple thousand higher income? If so, how much higher was the income? If you made 3 figures higher then I might see it, but a few thousand, come on. The trustee has too many cases to nit pick every one.

[Flamingo]

There is no "10 percent rule." As HHM stated, the majority of Trustees are not interested in occasional overtime. If the overtime is consistent and raises your disposable income over an amount that may make you think you'd better report it to your attorney, then I would say report it to your attorney. While some trustees, as stated by other posters, are not interested in a few dollars extra in your income each year, there are those who are. The best thing anyone can do is when they get a raise, bonus, overtime, inheritance, etc., etc., anything that would raise their disposable income, it's best to check with one's attorney as to your specific plan. The same applies if your disposable income decreases, although people are always more quick to report that to their attorney than when it goes up! :-)