Q: Does it do me any good to get a promotion or a better-paying job while in Ch. 13?
My Ch. 13 was filed and approved in the summer of 2017, so I am halfway through it. If I get a raise or a better-paying job now, does whatever additional income I get just go to paying a higher amount each month to the plan? Will I have to file a new budget and get a new approval from the court? Is there any advantage to me in pursuing a better-paying job?
A:
Hello,
Generally, a debtor does have to report and update their bankruptcy papers if they start receiving more income. This increased income may or may not increase your plan payments. It may depend on the type of chapter 13 case you are in and if your expenses changed.
Depending on your chapter 13 case, an increased payment plan may not be a bad thing necessarily. If you are already in a 100% plan, then you would likely just finish your chapter 13 plan ahead of schedule which is a good thing.
Generally, to answer your question, a debtor is obligated to report increased income to their bankruptcy trustee. If you feel unsure of how to move forward, then I suggest hiring an experienced chapter 13 bankruptcy lawyer to help you successfully finish your plan.
I hope this was helpful and best of luck!
Aaron
David Luther Woodward and Peter Maurice Lively agree with this answer
A: Depends on how much you owe and what percentage repayment you’re making under the plan. It could be beneficial (and again maybe not). Consult your bankruptcy attorney and discuss all the details do he can help you decide the right thing to do.
David Luther Woodward agrees with this answer
A: Chapter 13 requirements include providing a copy of your tax return to the Trustee yearly. If you are not in a 100% plan (providing 100% to your creditors), the Trustee can evaluate your income based upon the tax return, and if it appears that you have additional disposable income, you may be required to increase your plan payments. However, along with this, you have the ability to oppose any such increase by reviewing your monthly expenses - which may have increased since your case was filed in 2017. I certainly don't suggest declining a raise in pay - in this environment, you are fortunate to still be employed. I urge you to talk with your bankruptcy attorney - if you don't have one, take the opportunity to talk with an experienced chapter 13 attorney who can discuss this issue in more detail with you. Harlene
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