Knew this would come when I provided our taxes to the Trustee- Need advice!

[sheltielover]

Hi All- first off- this site and all of you have been a lifesaver since we filed for Chapter 13 in September 2013!


Husband has a salary job-- same amount monthly
I'm a 1099-- a freelance assistant-- so my income fluctuates A LOT!

So, I sent in our taxes to the trustee and of course, we got an email from the attorney yesterday:
Our office received a letter from the trustee which was sent to you as well regarding your tax returns and average income for 2013. We are aware that XXX's prior employment paid substantially more than her current job, and that this skewed the income.

In order to prove to the trustee that XXX was making closer to $1300 per month, and that XXX' income has remain unchanged, please provide all pay stubs or proof of income either of you have received since March 1, 2014.

A little background-- I had quit a high paying job at the end of April last year, where I was making around $90k a year. Now as an assistant/freelance job I make a lot less obviously.

I'm going to send in my husbands paystub so they can see his pay didnt change
i obviously dont work for the company anymore with the large salary so no paystub from that
and for my 1099 work-- obviously i wont get anything until the end of the year, so ill put some numbers together for the attorney

My question-- has this happened to all of you? Should I expect this to happen yearly when we send in taxes? Our monthly payment is $175 a month now-- which I find actually very good- I was surprised the attorney got it so low.

Thanks for any advice/help!

[LadyInTheRed]

It's hard to tell what's going on. Is your plan confirmed? Does your tax return show more income than on Schedule I? It looks like you are quotiing your attorney's letter. What did the trustee's letter say?

[LadyInTheRed]

I just reread your post. It sound like your tax return showed more income than your Schedule I. If so, the trustee wants to make sure you didn't deflate your income on your petition to get a low plan payment. You will get the same inquiries in future years only if your return shows more income than disclosed on your Schedule I.

[sheltielover]

It's hard to tell what's going on. Is your plan confirmed? Does your tax return show more income than on Schedule I? It looks like you are quotiing your attorney's letter. What did the trustee's letter say?

Thanks for the reply
yes, it was confirmed Dec 2013.
I have looked in all our paperwork and dont see Schedule I anywhere. I would think its the $1300 my attorney quoted.
Just looking at my net income for last year it was 22,000. So thats about 1800 a month. So 500 more.
Would my payment increase by 400 due to this?
It's so tough to be in a bankruptcy when I'm not making steady money.

[cmjohnston]

My husband does Freelance work too and is 1099 . We have to turn in monthly operating statements with his income. Do you do this?

[AngelinaCat]

Sheltie, could you possibly qualify for a CH7?

You would need to provide a bit more information about your total situation, before any of us--especially, Des--can comment.