We have locations available by appointment in the following areas. Please call us to speak to an attorney and set up an initial meeting.
The Chapter 13 bankruptcy process takes time, as most people will generally need between three and five years to complete their repayment plan. Needless to say, your circumstances could change substantially over that time. You might receive a raise at work or see an upturn at your privately owned business. Alternatively, your financial situation could become tighter if you are laid off or your investments tank. Our dedicated attorneys can answer your questions about changes in income during Allen Park Chapter 13 bankruptcy cases.
If your income increases during a Chapter 13 bankruptcy in Allen Park, it may affect your repayment plan. This type of bankruptcy is based on your ability to pay, so the court and trustee expect you to contribute your disposable income toward your debts. Any increase in your wages or other forms of income can change the calculations used in your plan, potentially allowing you to pay down more of your debts.
You must report the change to the bankruptcy trustee, even if it seems minor. The trustee may review your budget and propose an increase in your monthly payments to ensure creditors receive a fair share. Being transparent with the court is crucial. In some cases, the court may also allow you to use the increased income to pay off your plan faster, which can bring your case to an end sooner than expected.
A decrease in income during Chapter 13 bankruptcy can put your plan at risk. Job loss, reduced hours, or unexpected medical issues can make it difficult to meet your monthly payments, especially if you were already scraping by. If this happens, notify your bankruptcy attorney and trustee immediately. You may be eligible to modify your repayment plan to reflect your new financial reality. The court has the right to alter your plan, providing you with more favorable terms and lower monthly payments. The court may approve lower payments or extend the length of your plan to help you stay on track.
However, if your income drop is significant and long-lasting, you might consider converting your case to Chapter 7 bankruptcy. To do so, you must pass the Chapter 7 means test and show you no longer have sufficient disposable income. The benefit of this is that Chapter 7 bankruptcy cases can conclude in just a few months.
You have an obligation to provide full financial transparency to the bankruptcy court and its trustees. Whether you are in the midst of a Chapter 7 or 13 case, failing to disclose a notable increase in your income could have serious consequences.
While minor fluctuations might not have a major impact, it is still important to report windfalls or wage increases to the trustee. It could impact your means test eligibility in a Chapter 7 case, for example.
If the court or the U.S. Trustee learns of your increased income and determines you failed to notify them, it could lead to your bankruptcy being dismissed. In some cases, it could even result in criminal fraud charges. Reporting these changes in income in your Allen Park Chapter 13 bankruptcy is crucial.
You should always notify the trustee as soon as possible when your income changes. When you work with our attorneys, we can advise you on what these changes mean and deal with the court and trustee on your behalf. Call to discuss changes in income during an Allen Park Chapter 13 bankruptcy today.
We have locations available by appointment in the following areas. Please call us to speak to an attorney and set up an initial meeting.
We are a debt relief agency helping people file bankruptcy under the United States Bankruptcy Code.
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