What happens if the debtor’s salary increases after filing a Chapter 13 wage-earner plan?
The Bankruptcy Code requires that the debtor contribute his or her projected disposable income toward the plan payments for the first thirty-six months of the plan. Although the code imposes this requirement only when the trustee or a creditor demands it, in realty the trustee always requires it, at least at the beginning of the plan. Whether changes in salary will change the payment plan depends on a complete consideration of all of the circumstances.If the debtor’s income changes after the case has been filed but before the court has confirmed the plan, making it binding on the creditors (which can take as much as six months), the trustee will closely scrutinize the debtor’s disposable income to make sure that the payments and the income are consistent and will incorporate any necessary changes into the plan. If the debtor’s income changes within the first thirty-six months of the repayment plan, changes in income may not necessitate any changes in payments. The trustee may, however,
