in ch13 and starting to make more money

[coronaglen]

Has anyone ever experienced the trustee going back for more money after they review your tax forms? My lawyer said he never saw it happen. I am finishing up year 2 and starting to to a lot better.

I am in southern california.

thanks

[HHM]

Legally possible, yes.

Practically, unlikely.

It really just depends. Usually the trustee information sheet will have some information on that contingency. Generally, the range seems to be about 10-20%+ and they may go back in to modify and up the payment. However, chapter 13 trustees are so busy with existing case load and the incremental benefit of getting a midstream increase in plan payment does not justify the time and cost to go in and modify.

[walkthaplank]

Has anyone ever experienced the trustee going back for more money after they review your tax forms? My lawyer said he never saw it happen. I am finishing up year 2 and starting to to a lot better.

I am in southern california.

thanks

I am in So Cal as well. My experience is that they don't. In 2009 I made substantially more than I did in 2008 and there wasn't a peep.

[minan]

We're in So Cal also and am not sure what our Trustee will do. We're still not confirmed (hope to be by June). Atty stated that in their experience, from 1% up to 10% is generally not touched. However we are not sure. Outside of the standard 2-4% cost of living raise, we don't expect anything else. This extra increase will serve as padding to get us through the next 4.5 years (we've already made 6 payments) of the 13. The only way our salary will increase significantly is if one of us were to move to a new job.

Agree with HHM that with the increase in the number of cases being filed and more expected, the Trustees are overloaded. This is especially true in states such as California, Florida, Nevada, where bks have increased.

[spidge]

...the standard 2-4% cost of living raise,...

Man that would be nice instead of the usual 1% to 2% Nestle has been handing out. At least the middle class has jobs!
Rant over.

I have read about the 10% threashold in many places, so that is what I intend to use as a guide. So if the cost of living goes up 3% and I get a 4% raise the net result to the trustee will be 1%. Not worried. Now if a promotion comes my way that will be another matter, but thats OK as the payment will still be based on disposable income. I just keep in mind that I am setting up the family for rising out of BK ready for future plans like school and retirement. Make more pay more sucks but in the end I know it will wash out.

[minan]

Spidge, the 2-4% is based on what our coworkers told us the average cost of living raises they have gotten in the last few years. I know this number varies company to company. We also tend not to get bonuses. That really sucks as we were hoping to use the bonuses to build a savings acct.

I have also read about the 10% in many places on this forum and online so we are using that as our guide also. It's too bad that the requirements vary Trustee to Trustee. It would be nice if the reqs were uniform, but it is what it is..

[LadyInTheRed]

My lawyer said he never saw it happen.

If your attorney is experienced working with your trustee and he hasn't seen it happen, then it probably won't happen. Of course, things can always change.

I agree that most trustees are just too busy to review everybody's tax returns and then force a plan modification. I doubt they are looking for extra work.