household income increases after filing ch 13?

[rymetymeuk]

Hey all,

if I file ch 13 and my wife doesn't, I know that the house hold income will be reviewed upon the planning of the pmt plan and assuming it's a 100% plan based on just my income alone, what happens if during the 60 month plan my wife's income increases? it may or may not, i'm just trying to be informed.
do we have to notify the trustee and get reevaluated?
thanks all

[justbroke]

In a 100% plan, nothing matters. You could even double your own personal income, and nothing happens. The reason is that you are already paying 100% to unsecured creditors so it does not make any difference.

In fact, after the Lanning decision you could propose a 100% plan to be paid over 60 months even though you could pay it off in 24 months. There are some Chapter 13 Trustee that still argue that in a 100% plan a debtor is still required to commit "all of the disposable income" to the plan. It's just not true for a 100% plan.

So, to summarize, in a 100% plan you do nothing but pay what you need to pay over the life of the Chapter 13. You don't even need to tell the Trustee that you received a large refund, or if you inherited $1,000,000. A 100% plan is a 100% plan is a 100% plan.

[rymetymeuk]

thank you!!

[justbroke]

Of course by "don't need to tel the Trustee" is not the same as not telling your attorney. Always inform your attorney of changes in financial circumstances. In most cases, inheriting $1,000,000 while in a 100% plan could work to your advantage. You could buy out the plan early at 110% and just be done! (The extra 10% comes because the Trustee fees are generally taxed to the Plan at 10%.)