Chapter 13 and Future Income

[BKilburn]

What is the name of your state? FLORIDA

After a Chapter 13 is approved for a 5 year payment plan, what happens if the following year I receive a substantial pay increase and/ or bonus and / or money from an asset sale of an equity that only 4% is held by me?

1. Does my BK payment increase?
2. Does the court expect a percentage, if not all, of the bonus or asset sale money to be paid toward the BK?
3. Can I use bonus money to pay off the payment plan early?
4. If I can pay off the payment plan early will the BK be discharged early?
5. After a couple years of on-time plan payments, can I still qualify for a FHA mortgage or do I have to wait until the plan is finished 5 years from now?
6. What kind of actions can dismiss a Ch. 13?
7. I have no assets, if Ch. 13 fails does that automatically force Ch. 7?

 

[JustAPal00]

What is the name of your state? FLORIDA

After a Chapter 13 is approved for a 5 year payment plan, what happens if the following year I receive a substantial pay increase and/ or bonus and / or money from an asset sale of an equity that only 4% is held by me?

1. 
   

   [*]Does my BK payment increase?

   It is supposed to, if the trustee is made aware of it. Your attorney should file an amended plan.
   
   

   [*]Does the court expect a percentage, if not all, of the bonus or asset sale money to be paid toward the BK?

   Yes
   
   

   [*]Can I use bonus money to pay off the payment plan early?

   You must stay in it 3 years. Then you can pay it off early. To get out before three years, you would have to settle all debts.
   
   

   [*]If I can pay off the payment plan early will the BK be discharged early?

   Yes
   
   

   [*]After a couple years of on-time plan payments, can I still qualify for a FHA mortgage or do I have to wait until the plan is finished 5 years from now?

   You have to wait until it's finished. If you pay it off early and get it discharged, then you can get a loan!
   
   

   [*]What kind of actions can dismiss a Ch. 13?

   non payment.
   
   

   [*]I have no assets, if Ch. 13 fails does that automatically force Ch. 7?

That depends!

 

[Ladynred]

I have no assets, if Ch. 13 fails does that automatically force Ch. 7?

No, it does not. If your Ch 13 is in danger of being dismissed, and your financial situation warrants it, you MAY be able to convert to a Ch 7 - provided you can pass the means test !

 

[NYMinute]

You can most certainly get an FHA mortgage after 3 years of on time payments with trustee approval.
As far as future earnings or bonuses, it all depends on your trustee. Some don't even want to see your tax returns or will never bother you as long as you're making your payments on time. Every district is different.
Be careful about the 3 year thing. That is OLD BK law. NEW LAW is that you have to stay in 5 years unless you're in 100 percent payback.

 

[BKilburn]

If a trustee doesn't want to see my tax returns, how do I know?