Income Change?

[Clouddancer]

What happens if your in a job that has fluctuating income from year to year, say it swings 10-30k? Would the Chapter 13 payments be modified each year?

[lrprn]

What happens if your in a job that has fluctuating income from year to year, say it swings 10-30k? Would the Chapter 13 payments be modified each year?

Typically no.

Ch 13 plans can be amended for *long-lasting/permanent* changes in income or expenses after filing, not for income fluctuations. The expectation of the court is that you will save the extra income you receive during the 'sweet' months to cover the shortfalls in the 'sour' months.

Now if you are seeing a consistent decline in income that shows no signs of improving any time soon, then your lawyer can file a modified plan in that circumstance.

Keep in mind that every time you modify a confirmed plan, your creditors who filed claims are notified and given a time frame (typically 30 days) to object to the modified plan. Although they almost never do, why open up that potential can of worms unless it's absolutely necessary?