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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17210
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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I am currently in chapter 13, my plan payment is confirmed/based

Customer Question

I am currently in chapter 13, my plan payment is confirmed/based on income=$124K and I have two more years to complete the plan but I haven't notified the trustee of my significant income increase for the last two years (2011=$138K and 2012=168K).
I want to amend the plan ... but I cannot get hold of my attorney.
My question is what kind of consequence am I looking at here given the fact that I failed to report the income increase ???
Submitted: 3 years ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 3 years ago.

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on

WALLSTREETESQ :

The law does not require you to amend your petition, when your salary increases,

WALLSTREETESQ :

some chapter 13 plans contain language requiring the debtor to inform the trustee of any increase in income occurring during the case. If your chapter 13 plan contains such a provision, this obviously will obligate you to inform the trustee of income increases, although a formal amendment to Schedule I might not be required.

WALLSTREETESQ :

Your tax returns should be given to the trustee every year, and the trustee at that time can ask for an increase in plan payments, however that is rare,

WALLSTREETESQ :

if your income was listed correctly on Schedule I as of the time of filing the case, you have no duty to amend your petition, even if your income increases

WALLSTREETESQ :

unless, you stated in your petition, you expect to have an increase,

WALLSTREETESQ :

if you did do this, you should send a letter to the trustee, and advise them of the increase, they may state you have to increase your payment, however in most cases, they will not ask you to amend your petition

WALLSTREETESQ :

If you want to amend your plan,

WALLSTREETESQ :

you should first send a letter to the trustee advising them of the matter,

Customer: replied 3 years ago.

Assuming that my chapter 13 plan contains a provision, will I be facing a severe penalty given the fact that I failed to report the income increase ???

Expert:  WALLSTREETESQ replied 3 years ago.
no, the worst that can happen is that the trustee increases your payment, to finalize the case, also, you can add any extra expenses as well.

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