Why would your chapter 13 increase? 17 Answers as of February 05, 2015

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David R. Fondren, Attorney at Law
David R. Fondren, Attorney at Law | David R. Fondren
Lots of reasons. Talk to your attorney.
Answer Applies to: Missouri
Replied: 2/5/2015
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
It could if you make more money or if your initial payment was calculated wrong.
Answer Applies to: New York
Replied: 2/2/2015
Law Offices of John W. Lee, PC | Shanna Courtney Harris
There are many reasons your plan payment could increase. One or more creditors may have filed claims in your case at larger amounts than you anticipated, and now your current monthly payment is not sufficient to pay off the minimum amount required. Your payment may need to increase if you are now making more money or you finished paying off a 401k loan and now have more disposable income. You will need to look at the individual facts of your case to understand what needs to be done.
Answer Applies to: Virginia
Replied: 2/2/2015
John W. Lee, PC
John W. Lee, PC | Timothy R. Douglass
There are several reasons your Chapter 13 Plan payment would increase. The statutes require that a debtor pledge 100% of his or her disposable monthly income for the life of the plan. Disposable monthly income is your entire income, whatever the source, minus all of your expenses. If during the life of your plan you have an increase in your income or a decrease in your expenses, then you would be required to amend your plan to pledge the additional disposable income.
Answer Applies to: Virginia
Replied: 1/29/2015
Stephens Gourley & Bywater | David A. Stephens
It generally would increase due to a provision in the plan, an increase of income, or paying off a secured debt.
Answer Applies to: Nevada
Replied: 1/28/2015
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    Oh gosh, talk about a broad question! There are all kinds of reasons why your plan payment might increase. Are you making more money? Then you probably can afford to pay more to your creditors. Did the claims you need to pay off, such as mortgage arrearages, tax debt or child support come in as more than what you estimated? Did property you own that wasn't protected by state exemptions get valued at more than the amount you claimed? Are some of the expenses you claimed not entirely necessary? To say for sure, an attorney will need to go over your financial records line by line.
    Answer Applies to: Nevada
    Replied: 1/27/2015
    Assuming that you are referring to the monthly plan payments they would increase if you now have more income and you made a modified plan calling for higher monthly payments or if some expense such as a repayment of a 401k loan now does not exist since it has been fully paid. The latter would state as such on the original plan calling for a higher plan payment at this time.
    Answer Applies to: Minnesota
    Replied: 1/27/2015
    Ronald K. Nims LLC | Ronald K. Nims
    Some Chapter 13 plans have scheduled increases which were planned from the beginning but changes in circumstances - lower expenses, higher income, an inheritance could also result in the plan being modified for a higher payment.
    Answer Applies to: Ohio
    Replied: 1/27/2015
    Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
    It would be best to have a lot more information in order to answer that question. Generally, your plan can only increase if you file a modified or amended plan. But that would not be a surprise and it seems like your increase is just that. Conceivably the Trustee's fee could change, but if that should happen, you'd almost certainly have notice of the increase, and it would not be very large. You can call the Trustee and ask. It is possible that there is some mistake. If you have a lawyer, discuss it with him or her. Or else find an experienced bankruptcy lawyer in your area. Our firm has represented debtors in about 2000 bankruptcies, and we might be able to help. Good Luck.
    Answer Applies to: Wisconsin
    Replied: 1/27/2015
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Math problems, claims come in higher than scheduled, tax debt not scheduled - these are the primary cause.
    Answer Applies to: California
    Replied: 1/27/2015
    GARCIA & GONZALES, P.C. | Richard N. Gonzales
    Any number of reasons. Pay an experienced BK attorney for one hour of their time to review your file with you. Now is not the time to cut corners!
    Answer Applies to: Colorado
    Replied: 1/27/2015
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    If your disposable income increases.
    Answer Applies to: Nevada
    Replied: 1/27/2015
    Law Office of Michael Johnson
    Law Office of Michael Johnson | Michael Johnson
    Depends on income and expenses that may have changed.
    Answer Applies to: Florida
    Replied: 1/27/2015
    The Law Offices of Ryan F. Beach, PLLC
    The Law Offices of Ryan F. Beach, PLLC | Ryan Beach
    I am assuming you are referring to the Chapter 13 plan payment. Unfortunately, there is insufficient information to answer the question in detail. Generally, Chapter pan payments may increase for a multitude of reasons, such as an increase in the monthly mortgage obligation being treated as a Trustee-paid claim, missed plan payments, budget objections by the Trustee and/or creditors, higher than anticipated claims, significant post-confirmation attorney work, etc. If you have an attorney, they should be able to address to this question as it relates to your case. If you are considering filing a Chapter 13, an attorney should be able to address to this question as it relates to your potential case.
    Answer Applies to: Michigan
    Replied: 1/27/2015
    Scott Goldstein | Scott Goldstein
    There are many reasons for a plan payment to increase - larger than expected claims from taxing authorities, larger than expected arrears on a secured obligation like a mortgage, income that exceeded estimations.
    Answer Applies to: New Jersey
    Replied: 1/27/2015
    John W. Lee, PC
    John W. Lee, PC | Kim A. Lewis
    I assume you are asking why the amount you pay for your chapter 13 plan payment has increased. There are several reasons that this happens but the most common is that the claims filed by your creditors are higher than the debt you listed on your schedules. Other reasons could be problems with your budget, either your income is higher than you disclosed or your expenses were not reasonable or something you were paying directly, a 401k loan or car payment, have been paid off and there is now additional money for the other creditors.
    Answer Applies to: Virginia
    Replied: 1/27/2015
    John W. Lee, P.C.
    John W. Lee, P.C. | John W. Lee
    There are many reasons a Chapter 13 plan payment could increase. To name only a few: (1) your income went up, (2) a secured debt paid outside the bankruptcy was paid off, (3) a 401K loan paid outside the bankruptcy was paid off, (4) a proof of claim came in higher than expected, (5) the trustee believes you make more money than your original schedules indicated.
    Answer Applies to: Virginia
    Replied: 1/27/2015
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