Payment increase to the trustee..

[endin2016]

Hello,
After 3 years of actively pursuing a Full Time job working multiple part time jobs, I am now employed full time. My question is, we filed Chapter 13 bankruptcy in 2011. We decided to forfeit our home because we are upside down by $75000. The increase to our annual income is about $20,000. We already pay $712/month and forfeit all of our income tax returns. What is the probability that our payment will be increased? We have 5 dependent children. Thanks for any responses.

[dmc-2008]

I am not sure in your case but in my case there is no increase in payment unless I get increase of 10% income. Congrats on new job. Just a couple more years and you are done!

[LadyInTheRed]

None of us can answer your question. You need to talk to your attorney.

[justbroke]

As stated, there is no way for us to tell whether you will suffer an increase. There are too many factors and the largest factor is the Means Test (Form B22C for Chapter 13 debtors). Your attorney would probably do a new Means Test and Schedule I/J and re-determine your actual DMI (disposable monthly income). That will help determine whether you would need an increase.

I was reading a letter from a Chapter 13 Standing Trustee from the midwest, and she had noted that 97% of her cases never face an increase! She stated that they typically leave people alone so long as any increase is not significant. Realize that I can't tell you what "significant" means and you also need to account for inflation, change in family size, change in spending, etc. All of that affects your expenses.

[andy158]

Our bk clearly states that any increase in income over 10% must be reported to our trustee. We have to submit copies of our tax returns every year as proof of income. The last two years were over 10%, but less than 15% and nothing was done. We have only 8 months left and I doubt if anything will change before our last payment (knock on wood). This year's tax returns will be submitted in April and by then we will only have 2.5 months left.