Income question???

[sunshinepa]

I am still considering my options for bankruptcy. Usually post some in Ch7. Plan on seeing attys next week but have a question in the meantime that I don't wish to ask the attorney.

Here goes.....hope somebody can answer.

If I go into a Ch 13 and later wish to work part time......do I need to notify the trustee once a plan has started. Been reading some posts and see people have paid off early.

Can anyone answer please???

[RunningMan]

Generally, if your income increases you need to notify the trustee. From what I have read here, it varies from trustee to trustee on how much of an increase they care about. Most say they ignore small cost of living raises. You can't pay off a chapter 13 early unless you pay 100% of the unsecured creditors claims. If your disposable income increases and your trustee increases your payment, he will send more money towards your unsecured creditors claims.

[HHM]

RunningMan is correct.

The trustee will usually inform you when they want to be notified, others will want to see copies of your tax return each year etc. It really just depends.

As for paying off early, it doesn't work like that. The total paid into the plan is subject to change. So, if you owe $80,000 in credit card debt, but your plan proposes to pay back only $20,000 over 60 months, in month 24, you cannot simply pay $12,000 to pay off the plan, you would need to pay $72,000.

[sunshinepa]

Thanks hhm and running for the responses. I really do qualify for a 7 but am very worried over aps ........seeing attys next week to file as I am about to be sued by CITI and sure the others will follow soon. I am also worried about SS income in two years for a 13 so just have to talk to attys and go from there. On a pension so not really concerned about raises etc.....PA is like all the other states..........retirees will never see another raise........LOL.