Income increase

[jersin000]

I have a question... I know that most trustees look at signifigant increases in yearly income, but what if your hourly rate stays under a 3% increase but you have a signifigant increase in tip income. Tips are never guaranteed but the hourly rate is always guaranteed. Is there a possibility the tip income will effect the plan? I dont want the payment to increase signifigantly and then my tip income goes back down again and not be able to make the payment.

3 years in and no problems so far..... The end is in sight and I don't want to get off track.

[lrprn]

How your trustee may react to a tips increase really depends on the trustee's customs plus your disposable income and plan. Give your lawyer a call or send an email to get his/her opinion.

Frankly, 95% of trustees don't pay much attention to increases in any kind of income unless the increase is over 10% and long-lasting/permanent. Your tips are unreliable from month to month, and most trustees won't go after anything that isn't "easy" and snags them or your creditors a significant payback. That seems very unlikely in your case.

The extra nickels and dimes we 13ers tend to worry about aren't even a blip on a trustee's income radar. Keep making your payments on time every month and you won't hear from the vast majority of trustees no matter what happens to your income over the life of your plan.

[Flamingo]

Note that when there is any financial change during your Plan years as to any increase in income, etc., check with your attorney as to what, if anything, you will need to do or supply. Your financnial house is not under your control during your Plan - you are under the control of the Trustee. If you are required to supply tax return copies to your trustee each year during your Plan and you do not provide any information as to any income increases or other financial transactions, it could put you in a bad position. If you play by the rules and fly low under the radar during your Plan, and consult with your attorney as to any financial questions, you will successfully complete your plan and not run into any issues.