Reduced expenses after CH13 Confirm...

[morpheus]

Hi, Nice to see I'm not the only one!

My alimony counted for expenses in my CH13, 5 year plan. I pay 3 years at a higher rate and 2 years at a lower rate before it ends. My divorce decree is included with my documentation in the CH 13, and the BK court was aware of the alimony decrease in the beginning. The CH 13 was confirmed about a year after my alimony started, so in about another year, alimony will drop. So before 36 months in to my 13 plan, my alimony will drop down. If it is already in the plan, do I have to tell anyone? It will show up on my taxes as a lower amount of support paid, so they will see it on the tax return. And most importantly, after I finally get some alimony relief, will the court take that too? I don't think they will catch it until after 36 months of my plan unless I say something... But does that put me at risk of doing something illegal and getting thrown out of my 13?

Thanks for any information!

[lrprn]

If it is already in the plan, do I have to tell anyone? It will show up on my taxes as a lower amount of support paid, so they will see it on the tax return.

It depends on the instructions your trustee gave you about reporting changes in income and how he/she typically handles significant increases in income during the plan. Have you asked your lawyer the best way to proceed in this situation?

And most importantly, after I finally get some alimony relief, will the court take that too? I don't think they will catch it until after 36 months of my plan unless I say something... But does that put me at risk of doing something illegal and getting thrown out of my 13?

You really do need to ask your lawyer about this.....but if you are providing your income tax returns to your trustee every year and the increases in income are there to see, then your lawyer may say that's sufficient notice to the trustee.

Again, it all depends on your trustee's instructions about reporting increases in income and typical customs in this situation. Hopefully you'll be able to keep the extra money for your emergency fund!

[morpheus]

Reduced expenses after CH13 Confirm...

Thanks for the information. I guess you are considering a "decrease in expenses" as an increase in income. I was just thinking that my income did not increase, my expenses lowered. I will probably not be making any more $, unless I get a small cost of living increase like 3%. I guess I will bring it up when the time gets closer. I have a letter that describes what I have to report that came from my lawyer, a yearly "review" of my case progress. But what to report depends on the definition of "income increase", which technically I will not have. Thanks for your effort, I'll talk to my lawyer. If I play dumb, saying "I reported it upfront" and "I reported all income increases" I think I would have a good point. Or is that a big "risk"? Thanks again, I'll post the result when I find out.