What happens if my income increases during Chapter 13 Bankruptcy?

If your income increases during Chapter 13 Bankruptcy in Virginia, you will need to notify the court and your bankruptcy trustee immediately. This is because any increase in your income could mean that you no longer qualify for the Chapter 13 Bankruptcy. Your income levels will be re-evaluated to determine if you meet the requirements. If it is determined that your income has increased too much, your case may be dismissed or converted to a Chapter 7 Bankruptcy. It is important to remember that any additional income you earn during your Chapter 13 Bankruptcy process must be reported to your bankruptcy trustee. The trustee is responsible for determining how much money, if any, you should pay into your repayment plan. If your income increases, your trustee could require you to make higher payments for the remainder of the repayment plan than you had originally planned. If you decide to convert your Chapter 13 Bankruptcy to a Chapter 7 Bankruptcy, you must meet certain criteria. Generally, you must pass the means test, which is a test of your financial situation. Depending on your income and debts, you may not qualify for a Chapter 7 Bankruptcy. If you have any questions regarding the effects of an increase in income during Chapter 13 Bankruptcy in Virginia, it is important that you speak with an experienced bankruptcy attorney. An attorney can help you review your financial situation and explain the consequences of any changes in your income.

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