Just Filed

[roxiewg]

Hi I am new to the forum. I just filed Chapter 13 on October 31. I would like to know if anyone knows while in Chapter 13, will getting a raise hurt you and can you keep any bonuses from your job?

[justbroke]

Hi I am new to the forum. I just filed Chapter 13 on October 31. I would like to know if anyone knows while in Chapter 13, will getting a raise hurt you and can you keep any bonuses from your job?

Maybe and maybe, answering your questions respectively.

Raises generally won't hurt you unless they are over 3-5%. The Trustee will be monitoring your income. Unless you're paying 100% to unsecured creditors through your plan, the Trustee will seek to get as much as they can from you.

Generally, raises which cover the cost of living increases (3-5% and sometimes a little more depending on inflation), won't be touched.

On your second point, bonuses will probably be taken as well. Again, unless you're in a 100% payback plan to unsecured creditors, the Trustee will seek the money.

As a matter of fact, even if you're in a 36-60 month plan and pay 100%, the Trustee will likely still take anything over 5% of your salary to pay the plan faster.

[roxiewg]

Even if I have never received these bonuses before?

[justbroke]

Even if I have never received these bonuses before?

The Trustee will (should) be reviewing your tax returns every year during your Plan period. This is to see if you made "more than" you stated in your petition.

If the amount is significantly different -- generally over 5% is considered significant, but this varies by Trustee and District -- then the Trustee will enter a Motion to Amend Confirmed Plan to increase your plan payments!

Yes, it does happen. Generally though, I've read that statistically, only 10% of plans are modified by the Trustee to increase the plan payments.

[liz417]

Hi I am new to the forum. I just filed Chapter 13 on October 31. I would like to know if anyone knows while in Chapter 13, will getting a raise hurt you and can you keep any bonuses from your job?

Hi and welcome to this forum!
I was told by our attorney that all bonuses/tax refunds will have to go to the Trustee and that raises over 10% will be reviewed by the Trustee too. It all depends on your Trustee.

Good Luck!

[krielly]

If you have a lawyer, he is DEFINITELY the one to ask about how your trustee will treat your increases in income and bonuses.

All trustees are different. We filed old law (so maybe that's part of the difference), but we never have to turn in tax returns, and the trustee has never asked for additional money. As long as we make our payments every month, we pretty much stay under his radar.

From what i read here, the are all different. Again, your lawyer will know him/her best, and what to expect.

Welcome to the 13 club!

[kmb]

We filed under new law and our Trustee has also not asked for our tax returns or any additional money, despite the fact we both received raises over the last year (though not higher than 5% each).

[roxiewg]

Thanks

Ok, thank you all and I am glad we have a place where we can all talk

[soccermom]

Our trustee has never requested any additional information from us as long as we pay on time. When I got a new job I called my attorney's office and they said that the new job would not affect the plan so I guess it is up to your trustee. I hear some of them are pretty strict.

I have purposely stayed below the radar because I would hate for them to bump up my payments.

We made our last payment this month. Looking forward to an end.