Went to 341 now more confused

[tadbitconfused]

Ok.. Yesterday was our 341 our lawyer was able to keep my cars out of the plan.. The trustee said since my car was a 0 interest loan that this was a one time shot and that ford didn't need the interest nor would he charge fees on it since they had all of our income.
I asked the lawyer, I even asked the gentleman that taught our class (financial planning) required in california if my income should increase or if my husband gets a bonus or he gets a raise does our plan payment increase he said no. I said even if we are not paying 100% to plan... we are 13% they all said no.. I asked about my income tax refund they said no.. Your agreement has been made and that is how it stands unless you win the lottery or inherit a large amount that we can keep our bonus and income tax..
What about you?

[Crainial Access]

oh no here we go again.....another income is increasing question during your plan..........

"I asked the lawyer, I even asked the gentleman that taught our class (financial planning) required in california if my income should increase or if my husband gets a bonus or he gets a raise does our plan payment increase he said no. I said even if we are not paying 100% to plan... we are 13% they all said no.. I asked about my income tax refund they said no.. Your agreement has been made and that is how it stands unless you win the lottery or inherit a large amount that we can keep our bonus and income tax..
What about you?"

I have asked a similar question in many forms here and there is not a definative answer. Most responses surmise that if you are in a 100% plan you will not see an increase in your plan payment......if your income increases.....others conjecture that they will shorten your plan length by taking your income increases. So no one has really been through a similar experience under the new laws as far as I can see. I'll let you know what happens to me in a month or two!

[flower04]

Our lawyer said that any raise would have to be 10% or more before the trustee can do anything with it. HTH

[laurannm]

I think the reason why there isn't a definitive answer is because it's a district-by-district thing. Most districts seems to follow the 10% rule, others want to see tax returns every year and will up your payment if your income has increased, and others don't ask to see anything and don't care as long as you keep making your payments on time.

[HHM]

Legally....in ALL districts...the trustee can audit the account and if they see an increase in income (without a corresponding increase in expenses) the trustee can demand a higher payment. However, the procedure for doing so is a little more complex.

This is more an issue of practicality and trustee aggressiveness. Many trustees simply don't bother to tinker with confirmed plans becaue of the cost/benefit ratio.

[laurannm]

Thanks HHM

Typically will your confirmed plan paperwork specifiy how the trustee will handle audits, tax returns, income increases, etc. during the life of the plan?

[tadbitconfused]

From what it sounds like to me... our trustee is just sitting back and making his money and if we mess up... watch out... he will be out to get us...LOL...Thanks and God bless

[HHM]

The plan usually does not get that specific. Most trustess have a packet or a letter that explains certian things like tax refunds etc.