Modifying/Increasing Chapter 13 payment

[sharina]

Hello All,
I read alot about plans where the Trustee has increased plan payments after a plan was confirmed. How does this work? I would assume that there is a process that has to be followed to increase the payment. Wouldn't the debtor have an opportunity to file a new budget, etc before a payment simply increases.

Thanks

[Flamingo]

If one's income rises, usually over a certaiin percentage, after filing, that extra income is disposable income that is available to give to creditors over and above the confirmed plan amount. The Plan would be modified to include that increase. Many trustees monitor yearly income by requiring filers to submit their state and federal tax returns within a certain time period after filing (it was five days for us).

If you are concerned above this, just ask your attorney what the trustee requires if you have an increase in your household income anytime during your Plan and what you would have to report or not have to report.

[sharina]

Understand all that. To ask another way - I am saying if the Trustee reviews the tax returns and deems that there is extra disposable income - do they just up the payment and that's just the way it is - seems unfair that the debtor would not be able to file an amended budget, etc. By the way, I am paying 100% back to unsecured under NEW law.

[HHM]

Typically, the trustees would need to file a motion to amend the plan, you would be served with the Motion (i.e. mailed to you), at which point you would have the opportunity to oppoose. But procedures can vary by district.