Chapter 13 & Repayment

[Blackadder]

I've tried looking everywhere for this answer but I can't find it.

If after everything it is agreed that i have to pay back $15K over 5 years, can they go back and adjust upward if I make more money later down the road??? IE: Promotion or raise

Do tax refund go toward paying this off early??? or does it get added to the pot without hitting the balance???

My wife says with all my questions and pondering that I am halfway to becoming a bankruptcy lawyer

[liz417]

I've tried looking everywhere for this answer but I can't find it.

If after everything it is agreed that i have to pay back $15K over 5 years, can they go back and adjust upward if I make more money later down the road??? IE: Promotion or raise

Do tax refund go toward paying this off early??? or does it get added to the pot without hitting the balance???

My wife says with all my questions and pondering that I am halfway to becoming a bankruptcy lawyer

Hi,

Yes your payments (and pay back amount) do get adjusted if you receive a raise and/or bonus., unless you are 100% payback. Some Trustees are only interested in your increased $$ if it's 10% or more (your attorney would know what the Trustee expects, so make sure to ask!). We were told that our Trustee will take our take our Tax refunds and bonuses for the next 5 years Again, it depends on your district. I read that some ch 13 filers were able to keep a certain amount before turning it over to the Trustee.

Good luck!

[Blackadder]

I figured as much. I guess Chapter 13 really is all about seeing how much of the $64K I owe they can collect within 5 years. Anything left after the 5 years is what goes bye bye. Thanks for the info.

[justbroke]

If after everything it is agreed that i have to pay back $15K over 5 years, can they go back and adjust upward if I make more money later down the road??? IE: Promotion or raise

Absolutely. Chapter 13 is a Reorganization Plan and also known as a Wage Earner's Plan, because you commit all or your future disposable income, for the duration of the commitment period! Even if you are in a 100% plan, they will increase your monthly payment so that you pay the plan off earlier! Remember, the law reads that you must commit all projected disposable monthly income. It doesn't read whatever the plan says. The plan is subject to modification at anytime by any creditor or the Trustee... or the Debtor.

Do tax refund go toward paying this off early??? or does it get added to the pot without hitting the balance???

Yes, but won't change the Plan payment... just increases the amount you pay to creditors... unless you're already paying 100%!!!

My wife says with all my questions and pondering that I am halfway to becoming a bankruptcy lawyer

You do learn alot through this process.