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Pension and chapter 13

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    Pension and chapter 13

    We are in a chapter 13 in Illinois, my husband has been offered his pension for one of the jobs he worked, It is a large sum. at least to us it is, what we want to know is will the trustee want this too? We already had to give up our tax refund. We called our attorney and she said she thinks we are safe but fax it to her of course its the week-end so thought maybe we could get some thoughts here,
    Thanks
    Peg

    #2
    There is absolutely positively no way to tell if a Trustee will want an increase in contributions toward sthe Plan. The typical Trustee doesn't care what you do if you're in a 100% plan or your increase is less than around 10% or so. If it's significant and could provide a significant dividend to the unsecured creditors, the Trustee may become more interested. There is just no way to tell! (Some of this comes down to how long you have been in plan, whether you were a model debtor, and even if a Plan Modification would cause increased attorney fees, thereby defeating any modification -- because the attorney fees are then paid through the plan!)

    Please follow your attorney's guidance. They know more about your District, your Trustee, and certainly more about your finances (and expenses) than we know. If your attorney thinks it is at a level where you need to disclose this to the Trustee, your attorney may have you do another expense sheet because your expenses likely increased over time... negating the increase in any "significant" way.

    (Please don't ask me to define "significant" as it's totally subjective and no one can really understand how a Trustee "ticks".)
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

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