The pandemic has changed the way most people live, work, spend money, grocery shop, as well as a multitude of other things. A great many people were laid off, furloughed, switched to part-time, or had some employee incentives taken away. Other people have benefitted from the mortgage forbearance, stimulus checks, and the student loan moratorium and want to know how they will be affected in the future.
If you are in a chapter 13 bankruptcy, and your income increases from when you first filed your bankruptcy, your attorney will discuss with you that you may need to start paying more monthly income into your bankruptcy plan, because you have more income at your disposal. A plan modification would be discussed and approved by you and your attorney.
Your chapter 7 will likely not be affected as the increase in income would need to raise a concern with the trustee’s office that there is a presumption of abuse. But, the key with a chapter 7 is your income at the time of filing and the calculation based on the last 6 months as required by the means test. Getting a new job or a pay increase after filing is absolutely allowed.
Whatever the situation is, we will always do our best to stay informed and to inform our clients. There are options in your bankruptcy for increases (or decreases) in income, catching up on payments, missing payments, buying a house, selling a house, and more.
Do not be afraid to contact us at www.kainscott.com to get your questions answered! The first consultation is free and you are not obligated to sign or put any money down. We want to do whatever we can to help you during such a crazy time.