Explain lift and budget control?

[ansky0007]

Sorry, Title should read explain life not lift.. Typo

How are you monitored after a chapter 13?

For the 5 years on a budget do they take your bank statements, pay stubs, etc. every month to see what you are doing with your money?

What if you make more money do they see this and have the cabability to change your plan to make you pay back more?

[HHM]

Usually, about the only thing that is monitored is your tax return. The trustee has the "right" to monitor you more closely, but for practicality, during the plan, most trustees will simply have you send them copies of your annual income tax return. If that return shows a significant increase in income; yes, they can go back in an up your payment.

However, doing so is not that common.

[chloe0724]

We were told that if our income increased more than 10% above what it was when we filed, that we would have to apy more into our plan.

[justbroke]

For the 5 years on a budget do they take your bank statements, pay stubs, etc. every month to see what you are doing with your money?

What if you make more money do they see this and have the cabability to change your plan to make you pay back more?

As other's have posted, they look at your Federal Tax Returns to determine what your prior year's income was. They use this to determine if your income has changed significantly (I say > 5%, but others mention that 10% is the magic number).

If you make more than that 10% number, then the Trustee will file a Motion to Amend Plan. If you have corresponding (read offset) expenses, then you go to that hearing and defend why you don't believe the Plan should be Amended. However, it's likely that your plan payments are going to increase, unless you can prove expenses within the guidelines.

This is all unless you're paying 100% to creditors already. Realize that the Trustee is trying to get the unsecured creditors paid at 100%!

[ansky0007]

So essentially if I am on the border of a CH7 or CH13, it would be in more interest to go CH7?

Under chapter 7 if I got a new job making $30k it would not make a difference correct?

[justbroke]

Chapter 7 is all about NOW. Chapter 13 is all about the future. At least that's how I think of it.

A Chapter 7 straight liquidation is to your benefit, if you don't have many assets you want to protect or otherwise can't protect through exemptions.

Chapter 7 is truly a "clean slate".