bi-weekly paycheck

[tylermom]

My husband and I are currently in a ch. 13 and have been since October, 2007. So far things have been somewhat quiet for the most part. My husband and I are both paid bi-weekly from our employers which usually results in 26 paychecks per year, however in 2009 with the holidays falling as they did would be my guess we received 27 paychecks. I don't remember this ever happening before, if it did it would have been years ago. As a result of receiving 27 paychecks we have barely went over the 10% increase in yearly income that the trustee may watch for each year when we file our tax returns. Had we not received that extra pay, we would have been fine. If for some reason this would raise a red flag and the trustee would file a motion to increase our monthly payments does anyone think we would have a reasonable arguement given the circumstances? We have 2 1/2 yrs left to complete the plan and in the next two years I have already checked and we will receive 26 paychecks as usual. Any thoughts or comments would be greatly appreciated.

[klandsb]

I really dont think the trustee has time to nit pick on this issue and you have proof to back it up... I think the chances are slim to none that it will even be picked up... Just my thoughts...

[BuckeyeGuy13]

I'm in the same boat. Remember, you got an extra paycheck and they received an extra deduction for your Ch 13 payment. Assuming you have a wage deduction order

[tylermom]

We send in our monthly payment each month to the trustee, someplace in Tennessee actually, but we live in Illinois.

[klandsb]

tylermom.... I also get paid biweekly so I recieve 26 paychecks a year like you... So they took my mthly pmt to the trusteee x 12 and then they divided it by 26 (not 24)... So in essence my pmt taken out of every ck is a less then if I were sending them the ck every mth directly due to the fact that I get an extra 2 paychecks a year.... Hope this makes sense... So all in all they still are getting the same amount just spread out.
On this theory you are going to be just fine....

[tylermom]

Thank you for the replies. I do not have a withholding order through my employer. I send the payment each month on my own to the trustee. I'm mainly concerned that since my husband and I each received 27 paychecks in 2009 rather than the normal 26 that it will cause our monthly payment to increase since the additional paychecks barely put us over the 10% increase in income for the year. I guess I'll find out once I file our tax returns and provide copies to the trustee. Again thank you for your responses.

[lrprn]

I'm mainly concerned that since my husband and I each received 27 paychecks in 2009 rather than the normal 26 that it will cause our monthly payment to increase since the additional paychecks barely put us over the 10% increase in income for the year.

For your trustee to care about this situation, the income increase has to be long-lasting. One extra paycheck because of the way the dates fall is *not* long-lasting. You have nothing to worry about here.

[ccfriend]

I have the same situation because now that there have been 27 pays when I file my taxes it looks as if I made more money this year than I would have had Jan 1 not fallen on a Friday.