Legal Question in Bankruptcy in Indiana

Increase/Decrease in Salary during a Chapter 13

We just started on a Chapter 13 plan and it seems to be working out fine. I want to know if my husband's salary drops or goes up during the 3 year plan, will our payment change? Is this something that we need to notify our attorney about?

Also, we were told that any tax returns in the next three years that are over $500 need to be sent in to the court. If we receive a big tax return, does that go toward the plan or is that just considered extra. (We are paying back about 33% of our debt on our plan.) Thank you!!!!!!


Asked on 1/24/03, 10:05 am

1 Answer from Attorneys
C. David DuMond Law Offices of David DuMond

Re: Increase/Decrease in Salary during a Chapter 13

Your attorney should be happy to answer this question for you. In general, the Chapter 13 trustee needs to be informed about changes of income. Any changes considered to be "substantial" may require a modification of the Plan. Tax refunds exceeding $500 suggest to the trustee that you are having too much withheld, so the "disposable income" is more than at first reported. Again, call your attorney. He or she will cheerfully answer your question.

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Answered on 1/24/03, 10:18 am


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