Do I Have to Report an Increase in Income to the Bankruptcy Trustee?


What a big change a Chapter 13 bankruptcy can make on your life! Suddenly you aren't being woken up at all hours by creditors or worrying about finding a foreclosure notice in the mail. However, in order to continue to keep this tremendous stress off your back, you must follow the Chapter 13 rules.

We've discussed one rule of these already; you must get permission before you incur any new debt. That isn't the only rule in a chapter 13 - you must also report changes in income. The Trustee and your bankruptcy attorney understand that life continues to happen while you are in a Chapter 13. Your income might go up after a promotion or might plummet after a job loss. Whatever does happen to your income, the Trustee needs to be kept abreast to the situation to make sure that your plan payment is still appropriate.

Bankruptcy Lawyers Chicago, Bankruptcy Attorney Atlanta, Denver Bankruptcy Lawyer,

An increase in income may result in a higher plan payment. On the other hand, a decrease in income or job loss could allow your St Louis bankruptcy attorney to modify your payment to be lower. Your plan payment is not just based on your ability to pay but it may cause a change. To get the numerous benefits of filing bankruptcy, you have to make your best effort to pay your debts.

Will not reporting an increase or decrease in income land you in jail? Not necessarily. In most cases, withholding information about your income will result in a dismissal. That means that all the effort and time that you and your bankruptcy attorney spent getting you out of debt could have just been a waste. How would it feel to have gotten through all the obstacles and end up without relief? I know I wouldn't put my family's safety and happiness at risk.

Keeping information about your income change from the Trustee means that you could be accused of bankruptcy fraud also.

You are the determining factor in how many challenges you will encounter on your path to a fresh start. You can choose to follow the rules and get a fresh start for you and your family; and with the help of an experienced bankruptcy attorney, that may not be such a difficult task.

So, what's your next move? Will you continue to drown in debt or will you do something about it?


Memphis Bankruptcy Attorney

Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.

Rating of Memphis Bankruptcy Attorney




Get Online Application at online Bankruptcy Lawyer.

0 comments:

Post a Comment