Chapter 13

[Stitch14]

Im really struggling financially under my chapter 13 . What happens if i get another job will how much does it increase my payments

[justbroke]

Welcome to BKForum!

You'll hate the answer, but it depends. I would reach out to my Chapter 13 attorney to ask, but I'll provide my perspective. Generally speaking, the Chapter 13 Trustee doesn't seem to mind if the debtor's income doesn't increase by more than 10% annually. Are you required to provide your tax returns each year? If so, then the Chapter 13 Trustee is (likely) watching your income. If not, then you may have a Trustee that doesn't really care so long as you stay in plan and on time with your payments.

Personally, I'd reassess my expenses and see what is causing the issue. I do know that the economy is not great and prices of many commodities have gone up and that may put stress on your plan. Your attorney may have some ideas, but the second income may help offset this. Worse case is that the Trustee requires a new Schedule I/J and you can use your new increased expenses to show that the current budget doesn't work.

[Carmella]

Are you in a 100% plan? If you are it may not effect you. If you are paying less than 100% I would check with the attorney to see if it will increase or how likely it is that your payments will increase.

It could depend on how much your income would increase with another job. Actually I would run the question past the attorney whether you are in 100% payback or not.

[Stitch14]

I dont have any new increased expenses. I do have to turn in my tax returns wonder if they will keep my return to ? I was working 2 jobs majing 72000 a year but had to quit 1 because it was taking a toll on me uo at 4 am and worked thru the day to 10 pm. So now im at 30 hours a week and its not doable

[justbroke]

If you have no new or increased expenses, then something is wrong. You are either not able to budget or you refuse to budget. Those two things can destroy a Chapter 13. If your Chapter 13 is based on the $72K a year, then you really need to get an immediate appointment with your attorney and let them know. Whenever you have a change in financial circumstances it is important to communicate that with the Chapter 13 attorney. They "may" be able to rework the numbers unless you have a plan minimum which requires your payment (in other words, you have no DMI according to the schedules).

So, that begs the question. Was your Chapter 13 based on the 2-jobs and $72K a year?

[Stitch14]

No its based on the 32000

[justbroke]

No its based on the 32000

Okay. It's good that your plan is based on your current income. The issue is where is your money going and whether you are in a "tight" Chapter 13. You may not be able to fix the latter issue. You may be able to get a second job but you'll need to speak with your attorney to determine if you're going to just be "working for the Trustee." (By that, I mean to say that all your new net income just goes straight to the plan.)

Do you have a budget system? Do you track your spending, expense, and income somewhere? Do you know your cash flow (income vs. expense)?

[Stitch14]

Yes im on an extreme budget . I was behind in my utilities going in and was told my car insurance would be in my bankruptcy which it was not so trying to play catch up on a tight 13 is really hard. What is the 10 percent you were referring to as far as income 10 percent of what exactly ?

[justbroke]

Generally speaking, and only very generally speaking, a Chapter 13 Trustee "may" seek to have your plan payment modified if your income increases by more than 10%. We say "may" because some Trustees are more strict than others. For example, some Trustee don't care so long as you stay in plan and don't miss payments. Others are more strict and review your tax returns each year to determine whether to file a motion to have your plan payment increased. Because it's so Chapter 13 Trustee and district specific, a local attorney would have much more knowledge about what's allowed in a debtor's specific district.

[Stitch14]

Do they keep your tax retur.?

[justbroke]

Do they keep your tax retur.?

You have to ask your attorney or look to your Order Confirming Chapter 13 Plan. That can be specific to each debtor with even more specific things a particular debtor may do. For example, in Florida most Chapter Plans require a debtor to surrender "all disposable" income to the custody and control of the Standing Chapter 13 Trustee. That means all tax refunds. You would need to consult your individual order confirming your plan or your attorney to give you the specifics for you personally.

Generally, a Chapter 13 debtor in a plan which pays less than 100% to the unsecured creditors will have something in their plan concerning tax refunds. Some trustees will let you keep up to a certain amount, whereas here, in Florida, we turn in our entire refund. Of course we can ask the Trustee to keep some of it for a specific unplanned expense and most have a form that the debtor would complete to make such a request.

[Stitch14]

Thanks so much . Really helped me