Has anyone had income increAse while in ch13?

[trekjudy]

We are from Michigan finished our 1st yr in ch13, 4 more to go. We are current with our payments and have never missed one or late. We have a temp. Increase in pay had the opportunity for overtime this su
mer. Does the trustee closley monitor the income tax returns? Has anyone had an increase on their confirmed plan

[tigergem]

You need to read your confirmation order. My trustee wants me to submit new income & expense schedules within 30 days of any employment income increase. If it is only a temporary increase, you should note that on your schedules. Your trustee may or may not want to modify the plan.

[rjd78]

I had an increase by 100%. However, my situation is a little different. I picked up a contract job that is year-to-year. It increased my income by 100%. My attorney said that there is nothing that states I owe the trustee any more money than I'm already paying simply because I decided to "start moonlighting."

We submitted an amended plan, that shows an increase in income, and the trustee didn't object or ask for anything more.

From what I understand, the trustees get an amazing amount of leeway with regards to this. So, it all depends on whether your trustee is a d-bag or not. If he wants, he can ask for more money.

Talk to your attorney, as he/she will know what your trustee is like.

[tigergem]

Mine has already proven himself out, when he made me amend my schedules to accurately reflect less than $10.00/mo change in expenses at my 341, so I am sure he will want me to modify my plan. Just the way he is.

[sassiebaz]

Yes, I did. When I told my attorney he said my payback would go from $75/mo to $1800/Mo. I about died. So I quit my job. We still haven't been confirmed and there have been so many changes personally. I am focusing on school and working a freelance job now.

[sunshineMN]

My husband just got a new job...and in fact got his first paycheck today.
His income has nearly tripled!! BUT, it's seasonal, so he'll get laid off for the winter.

We told our lawyer about the substantially higher income and all the factors that make it hard to calculate a new DMI, and the response we got was, "you don't need to do anything. If the trustee asks for tax returns and questions the increased income, we'll deal with it then."

I'm still baffled at this...just doesn't seem right to me. But, my guess is that trustees are so bogged down these days that as long as you fly under the radar by making your payments on time...they really don't bug you. And, I really do trust our lawyer. He's been around for a very long time doing nothing but BKs.

For now, we'll just bank the excess income. If the trustee catches it and asks for more, we'll have it. If not, then we'll be sitting pretty when our CH 13 is over.

Keep in mind that every state and every district...and every trustee is different for that matter. So you might have a completely different experience than us.

[rjd78]

My husband just got a new job...and in fact got his first paycheck today.
His income has nearly tripled!! BUT, it's seasonal, so he'll get laid off for the winter.

We told our lawyer about the substantially higher income and all the factors that make it hard to calculate a new DMI, and the response we got was, "you don't need to do anything. If the trustee asks for tax returns and questions the increased income, we'll deal with it then."

I'm still baffled at this...just doesn't seem right to me. But, my guess is that trustees are so bogged down these days that as long as you fly under the radar by making your payments on time...they really don't bug you. And, I really do trust our lawyer. He's been around for a very long time doing nothing but BKs.

For now, we'll just bank the excess income. If the trustee catches it and asks for more, we'll have it. If not, then we'll be sitting pretty when our CH 13 is over.

Keep in mind that every state and every district...and every trustee is different for that matter. So you might have a completely different experience than us.

That's interesting. From what I can tell, trustees are all different from one another. I get the impression that my trustee wants to see people get back on their feet, and it's difficult to do that if he's taking every last cent of your extra income.

He let me have my tax return last year. He didn't object to the new adjusted income sheet I submitted.

I basically am working a full-time job, and then on top of that, I've picked up a bunch of freelance work that has doubled my income this year. I notified the trustee of the increase, but it was difficult to project exactly how much I'd make; considering that it's freelance, and could be gone tomorrow. But, like I said, he didn't ask for anything more that I'm paying now. Which is really, really nice.

My only concern might be that after he sees my tax return, he might notice that the income was consistent and say I need to contribute more to the CH13. If that's the case, I'm gonna stop the freelance work. I'm of the opinion that if I'm gonna work my butt off, on top of my regular job, just to pay the trustee the extra money that I make, then it's not worth it.

However, my attorney said that he has yet to see a case where someone took a 2nd job and the trustee required that money be paid to the court. So, I guess I shouldn't worry.