What if my salary increases?

[bn7]

Hello,

we are 15 months into our ch. 13 plan and so far so good, our mortgage is on time and so are our ch. 13 payments. I have an opportunity to accept a job that will double my salary, what happens next if I do take this job? will my ch. 13 payments increase? do we need to re-file our case with our attorney to report my salary increase? can my case be dismissed?

[spidge]

Just notify your attorney. Most here have shared that an increase in one year of 10% or more may or may not trigger the trustee to seek a larger payment. It seems every district treats this differently.

[kornellred]

Doubling your salary obviously means that you will have quite a bit more disposable income, and that is money that can be used to pay your creditors. Since you are only 15 months into your Chapter 13 plan, not informing the trustee about the increase is too big a risk to take - reporting such increases is a requirement.

I do not know if there is any way for a trustee to determine if a debtor has experienced an increase in income except for income tax returns. Most trustees are far too busy to make inquiries. My own trustee does not require that I submit copies of my income tax returns.

[keepsmiling]

Well there's your rock and hard place.
Yes your payments will go up- probably significantly. Unless, of course, you are already at 100% payback.
But then, hopefully in 3 and a half years, you'll be sitting very pretty.