QUESTION

Will the new trustee take into account my new job?

Asked on Feb 02nd, 2012 on Bankruptcy - Georgia
More details to this question:
I was unemployed for a year and had to file for Chapter 13, as my spouse was working and I was receiving unemployment of $500/week. I found a new job back near where I was previously 125k/yr. Currently living on a shoestring. Will the trustee take all of my new salary now?
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5 ANSWERS

It is unusual for a trustee to modify a plan payment due to an increase in income. It is unnecessary for you to file an amended schedule I and J to reflect this changer, unless the trustee requires it.
Answered on Feb 03rd, 2012 at 3:03 PM

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Bankruptcy Attorney serving Cleveland, OH at Benson Law Firm
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In many jurisdictions, you must report to the Trustee when your income increases more than 10% from the amount listed on Schedule I. In our office, we ask clients to report any increase (or decrease) in income to us so that we can decide whether the Trustee needs to be notified. I would suggest you discuss this matter with your attorney ASAP.
Answered on Feb 03rd, 2012 at 11:39 AM

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Bankruptcy Attorney serving Honolulu, HI at Abelmann Peterson LLLC
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Under the bankruptcy laws, you are required to inform the trustee of your new income. Now, I highly recommend to work with an experienced bankruptcy attorney to ascertain the best possible outcome for you. Technically, if you file the required paperwork concerning your increased salary, your monthly payment will go up (probably drastically) in accordance with the monthly disposable income you have available. However, an attorney might be able to reduce the monthly payment to a reasonable amount by using available and permissible expenses to reduce your monthly disposable income. In short, you need to amend your paperwork so that your monthly payment will not go up or only go up a little.
Answered on Feb 03rd, 2012 at 11:28 AM

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Yes, any change in your circumstance necessitates a modification of your plan and petition schedules should be amended to reflect your change in income. You may need to either payoff the bankruptcy or voluntarily dismiss the bankruptcy.
Answered on Feb 03rd, 2012 at 11:27 AM

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Glen Edward Ashman
Only your lawyer will know (and if you don't have a lawyer get one). A change in income MAY support a plan modification or conversion. The Trustee doesn't decide this at all. You have to initiate appropriate filings.
Answered on Feb 03rd, 2012 at 11:25 AM

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