What happens if my income increases during Chapter 13 Bankruptcy?

If your income increases while you are in a Chapter 13 Bankruptcy in California, the trustee in charge of your bankruptcy will likely want you to put the additional money towards your repayment plan. This means that you may be required to make additional payments or increase the amount of your current payments. The additional payments or increased payments can help you pay back your creditors more quickly. In some cases, the trustee may also be able to adjust the length of time that you are required to repay your creditors. This could mean that you may have to pay back creditors faster, so you can get out of bankruptcy sooner than originally planned. Your increased income also may require you to report the additional income to the court. This is necessary to ensure that you are in compliance with all bankruptcy laws and to determine whether or not you are still eligible for Chapter 13 Bankruptcy. It is important to note that if your income increases drastically during Chapter 13 Bankruptcy, you may not be able to remain in the bankruptcy program. This is because your repayment plan may no longer be affordable, and it could be difficult to make the payments required. If this is the case, the court may convert your bankruptcy to a Chapter 7 Bankruptcy. No matter what happens with your income during a Chapter 13 Bankruptcy, it is important to discuss any changes with your bankruptcy trustee and a bankruptcy attorney. This will help ensure that you remain in compliance with all bankruptcy laws, and can help you get out of bankruptcy quickly.

Related FAQs

What happens if my income increases during Chapter 13 Bankruptcy?

Related FAQs

Related Blog Posts