What can change in the 13

[jwmc1]

I haver a question about what can change over the five years of a Chapter 13 plan. IN the past I would receive bonuses when the company did well, but needless to say I have not received this in a awhile. I don't see much coming in the next year or so, but if I were to get a bonus in two or three years into the plan, can the trustee force me to change the plan based on a new income? I understand that I might have to send the money to the trustee to paydown the plan balance, but can the trustee say, you were at a 25% payback, but since you have a higher income you are now at a 50% payback?

[optimistic1]

It really depends on his preference or what is listed in the paperwork they give you. If they see on your petition that you normally get bonuses, then they might want them.

They might not even look at your tax returns for all you know, only an experienced attorney that has dealt with the local court and trustee would know the answer.

[jwmc1]

But can they change the plan?

[woeisme]

it might not be a change in plan, the plan might be written (all bonuses must be reported to the trustee for possible distribution to creditors) or something like that. So yes, if your income changes (for the better or worse) the plan can change. Will it? Hard to say, every case/trustee is different.

[klandsb]

Is it possible for them to ask about any income increases you expect to get ?? I am in a union and we usually sign a 4 yr contract with a certain % payraise each yr. I think its 3% this year . Do I have to spell that out to the trustee ??

[lrprn]

But can they change the plan?

No, because a bonus or bonuses are one-time, unpredictable events.

Ch 13 plans are modified when you have long-term, ongoing increases or decreases. Short, one-time increases are handled on a case-by-case basis and depend on your trustee's typical customs in the situation. The amount of the bonus matters too. A small bonus will be overlooked more easily than a large one. Your lawyer can tell you what to expect if you do get bonuses during your active Ch 13.