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Ask John A. Flynn, Esq. Your Own Question
John A. Flynn, Esq.
John A. Flynn, Esq., Attorney
Category: Bankruptcy Law
Satisfied Customers: 202
Experience:  14 Years Experience in Bankruptcy - Mid-South Super Lawyer
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Re: Effects of income increase on wage earner plan in

Customer Question

Re: Effects of income increase on wage earner plan in chapter 13 - specifically in Georgia.
My understanding is, the trustee cannot increase the payments after the first 3 years. Is that universal? Or does it vary by state?
Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  John A. Flynn, Esq. replied 4 years ago.
After the original plan is confirmed, and before the completion of payments under the plan, the Plan can be modified by the Debtor, the Trustee, or an unsecured creditor. See 11 U.S.C. 1329. There is no such 3 year time limit anywhere in the country, unless of course it's a 3 year plan and payments have completed.
Customer: replied 4 years ago.

I've read the following on a number of lawfirm websites.....your answer seems inconsistent with this. Can you explain?

The Bankruptcy Code requires that the debtor contribute his or her projected
disposable income toward the plan payments for the first three years (36 months)
of the plan. Although the Code imposes this requirement only when the trustee or
a creditor demands it, in reality the trustee always requires it, at least at
the beginning of the plan. Whether changes in salary will change the payment
plan depends on a complete consideration of all of the relevant circumstances.

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