Legal Question in Bankruptcy in Virginia
Wendy Chapter 13
When a Chapter 13 is filed and all paperwork has been submitted by lawyer, approve by courts and Trustee, the monthly amount has be setup for repayment which is already coming out of paycheck weekly, can the Trustee come back and demand your Christmas Savings and Income Tax refunds? (Xmas savings was included in the original paperwork) so they were aware of it but did not mention it would be taken. Trustee is saying that this is extra money that can be paid to creditors above what was agreed upon when payments were setup. Is this normal or should I seek further legal advice? Wendy
2 Answers from Attorneys
Re: Wendy Chapter 13
Under the good faith test, the Trustee may do so. You should consult with an attorney about amending your Chapter 13 Plan, if necessary.
Re: Wendy Chapter 13
If the plan is confirmed, the plan and confirmation order govern. Your lawyer should be able to review these and advise you.
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