What happens if my income increases during Chapter 13 Bankruptcy?

If your income increases during Chapter 13 Bankruptcy in West Virginia, you may be required to pay additional funds to your creditors. This is known as an "income-driven" bankruptcy, where your ongoing income affects your ability to pay your creditors. The court overseeing your bankruptcy case will determine if you need to pay more than the amount specified in your repayment plan. The court will review your income, expenses, and the amount of debt you owe. They will also take into account any repayment flexibility given by the creditors. If the court decides you need to pay more due to your increase in income, the amount you pay each month will increase. This increase can be made in one of two ways. The trustee overseeing your case can adjust your current plan so that you pay more, or the court may change your plan to include what is called a "surplus income requirement," which calls for you to pay a percentage of any income over a certain threshold. It is important to be honest with the court when disclosing any changes to your income during Chapter 13 Bankruptcy. Doing so can help to ensure that the court makes an informed decision and that you remain in compliance with the terms of your repayment plan.

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