How do they know if you get an increase in income?

[rpg1977]

I asked my attorney if I need to turn in tax returns into the trustee. I know we are allowed to keep $1600 of our taxes refund and turn over the rest, but we do not need to turn in the actual paper returns as I have read alot of you on this board do.

So, how do they know if you have a change in income? If I decide to get a second job, do I need to just tell them or just go on about my business, lol.

I guess Im having a difficult time understanding how it is regulated. Are all trustees different? How do they know if one makes 100k this year as opposed to the 90k they were making the year before? (that was totally hypothetical..I wish I made 90k, lol).

I have a job now that is strictly "as needed" basis. I am a fill in person. Some weeks, I have 0 hours...some weeks, I can work a full 40. We figured my income on a 6 month average. Now, if I got a second job with permanent pay...say 20 hours a week..and keep the as needed position as well..that will probably raise my income a bit. Not much...maybe about 400 a month. How does the trustee know that and how big of an increase needs to be reported?

I just want to make sure I am doing everything correctly. I dont want to do something and have them think I am playing the system or hiding income. I honestly asked the attorney and she said something to the effect of "whatever happens after the confirmation hearing is fine...as long as you fly under the radar". Seems like she is saying make my payments and keep my mouth shut, LOL!

What if my husband gets a raise? Just keep my mouth shut? Seems shady, but all my creditors are just unsecured creditors and I probably don't want to give them more than what they are allotted anyway, right?

Thanks!

[Flamingo]

When you are in a Chapter 13, from the day you file until the day you are discharged, your financial house is not yours to control...it's under your Trustee. The Trustee, at any time during your plan, can ask for tax returns, pay stubs or any other documentation concerning your finances. If you want to successfully make it through your Chapter 13, when your income changes, you receive a bonus, hit the lottery, get an inheritance, have a decrease or increase in hours, etc., etc., do yourself a favor and contact your attorney and see what, if anything, needs to be done.

If you don't report increase to your Plan and changes to your circumstances that take place after you file (remember you filed under your circumstances at that time), you risk dismissal. Why take that chance?

[rpg1977]

That's what I was thinking. My lawyer kept looking at me funny..like why would I volunteer that information. I would feel too weird keeping extra income a secret.

Thanks

[Flamingo]

That's what I was thinking. My lawyer kept looking at me funny..like why would I volunteer that information. I would feel too weird keeping extra income a secret.

Thanks

If your attorney looked at you funny when you asked that question and you haven't yet retained this attorney, I would be looking for another one. Best of luck to you!

[jherron]

When we filed last year, I asked my attorney if I needed to report any bonuses or raises. He said there was no need to.

[optimistic1]

Most trustees probably dont even look at your tax returns, even though you are required to report them. Consult your attorney, and if they say you need to report it, then make sure you look at your expenses more closely at the same time, cost of living etc. Your raises and such should be covering inflation and cost of living increases, so maybe you can gobble it all up instead of giving it away to the trustee.

[graciemae]

We aren't required to automatically send in our tax returns, though I suppose they could ask for them. They never have so it hasn't been an issue. My husband has recieved very modest raises yearly but we have also added 2 more children to our family over the course of our 13 so it would probably balance out anyway. My income varies greatly, I provide childcare out of our home, and the trustee was aware that I had an income but since mine was so small compared to my husbands they weren't concerned about it's variance.

[Billssuck]

I only have to report when I know I will make 10 percent more than I did when I filed. So, to my understanding, if we made $70K/yr when we filed and we know we will make over $77K in one year, then we have to report it. For us, we have 3 sources of income so if even one of them increases over 10 percent, I plan on reporting it even though we may not exceed the 10 percent of the total income for all 3 jobs. I just want to be safe...

It is a real possibility that I may have such an increase in income during my plan to which I will have to modify if it comes true.

[justplaintired]

We had to send in 2 yrs worth of tax returns, 2008 and 2009. We might be different we are a C7, no asset. We had to send in 3 months of bank statements. We had to also send along our W-2's from 2008. This all went to our trustee. Maybe it's different state to state?