What happens when you get a promotion or pay raise?

[2muchinDebt]

I assume you tell the Trustee and then what?

[liz417]

It depends on your Trustee/District. Some Trustee want you to report anything over 10%, ask your attorney, s/he will know what your Trustee allows.

[2muchinDebt]

Ok..so say DH receives a promotion and gets another $5000/year and we have to report it to the trustee. What do they do with the $$? Do our payments increase or does it go towards the debt? Do we get to keep any $$ to put in savings or anything?

On another note:
I did our taxes this past weekend and we'll get back, but we need that $$ to get by another month until we file.

[ansky0007]

If you are not paying back 100% then they can take the increase and increase your payback to your creditors.

[2muchinDebt]

THAT's what I wanted to know. Geesh... so you don't get a cost of living increase? When I find a job every cent of that $$ will go to the CH 13 Trustee?

[rjl0206]

thats why the argument around here is, unless you are in a 100% payback why even bother to work harder/ try getting a raise or better paying job if all the extra income would go to the creditors?

ray

[filingin08]

I thought when you had a salary increase you could also show if your expenses increased. The next raise I get will likely go to offset the increase in health insurance premium I will have to pay. So, even if an increase might be 10%, what I will actually "see" at the end of the month might only amount to 6%.

[Scott50]

ultimately it depends on the trustee and how they handle increases it pay.. There is no across the board answer. I would contact your lawyer since they know the trustee and should be able to provide some guidance.

[2muchinDebt]

Thanks for the responses. We haven't filed yet, but will be by the end of the month or next month. I will have to ask our lawyer. That would suck if we had to give all of it to the Trustee. You know prices of things will go up in the next 3-5 yrs.

[brokeNconfused]

here is what i did. In washington district they require a notification of 10% or more. I got a 9% increase this year and notified my attorney. even though i did not reach limit i wanted it on paper i notified anyway. This did not include my tax return or overtime yet.