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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2815
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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I need to file chapter 13 and was wondering about how a change

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I need to file chapter 13 and was wondering about how a change in income is handled in 8 months when my wife retires. We plan on living full time in our Motorhome and traveling on both of our SS checks plus a small monthly VA pension. At present, she is making $50k a year as an RN and our chapter 13 will have to reflect that. Thanks.
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 6 years ago.
Hi and thank you for your question.
Great question, in anticipation of the retirement.
You can do 1 of two things.
First, you can file with a stepped payment, where you pay X until she retires, then Y from then on for the rest of the plan, assuming you know what income she'll be bringing in at that time (pension etc).
Second, you can file with the payment reflecting current income, then bring a motion to modify the plan in 8 months when her income is reduced, and request the payment be adjusted accordingly.

You still have to meet the plan requirements to pay enough of the the debt based on your means test -disposable income and asset protection, but either option would be available, but the former is easier as it is built in and you just change the plan payments as called for in the stepped plan.

Good luck.
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