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Exemptions/Chapter13

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    Exemptions/Chapter13

    Let's assume you have $13k in wildcard exemptions and claim very little, maybe 1/2 at filing. Your income is modest as are your pan payments allowing you to save a little going forward. Your savings increase a thousand or so each year of the plan. Do you have to update exemption schedules? I know income is scrutinized during the life of a plan but what about modest increases in assets such as cash? Is it necessary to withdraw them in cash as to absorb theme i.e, take them off the books, bearing in mind you remain safely under the wildcard exemption limits?

    #2
    I believe that exemptions are a one time deal that are usually revised between petition-filing and plan confirmation because you are exempting assets that the trustee would take if you filed a Chapter 7 (or convert to a Ch 7 from a 13), so it helps to serve as the baseline for your 13 as the minimum your creditors are to get and make you Ch 13 plan feasible. Your income increases are subject to taking by the trustee post-confirmation of your plan, especially if your plan calls for annual submission of income tax returns and/or income/expense statements, or if you modify your plan post-confirmation because you modified your mortgage and you have more $$ to pay into the plan. I have read on this board in other recent posts and threads that arbitrary upward adjustments of your plan payment by the trustee are rare.

    In my 13 I never had to pay more than my plan payment set at confirmation. But I never had to submit tax returns, etc every year. My salary increased 20% or more during my plan and my car was paid off but my plan payment was never adjusted upward. But that could happen in some districts.
    Filed Ch 13 November 2013, discharged March 2019

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