2 questions regarding chapter 13

Hello marrve -

1. When you say "file for taxes", do you mean will you get a tax refund if you are entitled to one? The answer lies with your bankruptcy attorney on that one. In some cases, your Chapter 13 case can be structured to allow you to keep your income tax refunds (mine was). In other cases, you have to turn your refund over to the trustee to help pay your debts. In ALL cases, you will be required to provide your attorney & the trustee with a copy of your tax return every year you are in the Ch. 13 payment plan.

2. Chapter 13 only stops creditors from collecting on debts that are included in the plan. If you forget about a debt, or choose not to include it in the Ch 13 payment plan, the creditor is free to pursue whatever means they normally would to obtain repayment of the debt.

Thanks Suebeehoney. If you recieve a raise at your job can they higher the payment plan?

I think so, it depends on how much the raise is for.

Yes, they can definitely increase your payment plan if your income increases significantly. However, if you receive, say, $1 per hour raise per year, chances are good that they will leave it alone.

But if your pay increases significantly (say you have a job earning $20,000 and you take a second job earning $35,000, increasing your income to $75,000 a year), you'll definitely be paying a whole lot more on your payment plan.

The best thing you can do in this situation is be honest with your attorney about your income. Obviously, this will work in your favor in the future if you are honest about it now, and sometime later, you end up losing your job or getting laid off. It works both ways - higher payment if you make more, lower payment if you lose your job or get laid off.