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Chapter 13 Plan – Getting a Raise

What if You Get a Raise During Your Chapter 13 Plan?

Chapter 13 Plan – Getting a Raise.  What will happen if you get a raise during your Chapter 13 plan?   Is it a good thing or a bad thing?  Can it cause your Chapter 13 plan payment to increase?   Receiving a raise during your Chapter 13 case can potentially alter the pay-back requirements for your Chapter 13 plan.  It is important to understand a few general things about how a raise of income relates to your Chapter 13 case.

You May Be Under Duty to Report Your Raise

You may be required to report your raise to your attorney and the Chapter 13 trustee.  Generally, if the raise is substantial such as an increase of income more than 10-15%, you should always report it to both your attorney and the Chapter 13 trustee.  Although no increase in your Chapter 13 payment may be required, you are generally under duty to report substantial changes of income to allow these changes to be reviewed by trustee.

Raises in Some Chapter 13 Cases Will Not Increase the Plan Payment

However, in some cases, a substantial raise income will also cause the trustee to motion the court for an increase in repayment to your creditors.  In such cases, your Chapter 13 plan payment must increase to meet the new repayment requirements for your new income level.

The Chapter 13 trustee, however, usually does not want to unreasonable burden the Chapter 13 case filer.  The trustee does not want to overburden the case filers to the point where finishing their Chapter 13 plan becomes less likely.   Sometimes the Trustee will not seek the maximum amount possible with the income level (such as turning the whole additional raise amount over for a payment increase).   They will many times settle on a lesser amount negotiated by your bankruptcy attorney.

For more information on filing Chapter 13 Bankruptcy, check out our Chapter 13 Bankruptcy info.  Bymaster Bankruptcy Law Offices offers FREE consultations.  Call us today at 317-769-2244.

Chapter 13 Plan - Raise in Income

Montgomery County Indiana Bankruptcy Attorney: Knowing the Facts

Knowing the facts about bankruptcy and attorneys in Montgomery County Indiana may seem a strange topic to research.  The beauty and rich history of Montgomery County could easily distract many people from such mundane facts.    From the winding Sugar Creek, to the parks, to historic downtown Crawfordsville: it’s perfectly Indiana.  Even the movie “Hoosiers” was filmed largely in Montgomery County, featuring New Richmond as the “Hickory” Indiana of yesteryear.  However, Montgomery County is perfectly the prototypically Indiana “scene.”  Examining Montgomery County can help one understand bankruptcy throughout the whole state of Indiana.

How Many Bankruptcies are Filed in Montgomery County Indiana Each Year?

An average of 180 bankruptcy cases are filed in Montgomery County each year. Recently, bankruptcies have been slightly in decline in Montgomery County.   This decline in Montgomery County bankruptcy filings is only following, however, the general U.S. trend of the last few years towards a decline of total bankruptcy filings.  Most bankruptcy cases (over 70%) filed in Montgomery County are Chapter 7 with the majority of the rest filed under Chapter 13. Below is listed the total bankruptcy filings for Montgomery County for the last 8 years:

  • 2008 – 170 total filings
  • 2009 – 210 total filings
  • 2010 – 235 total filings
  • 2011 – 180 total filings
  • 2012 – 180 total filings
  • 2013 – 137 total filings
  • 2014 –  90 total filings
  • 2015 – 120 total filings
  • 2016 – 89 total filings (note: 2016 amount predicted)

Why are Bankruptcy Cases not Handled through the Montgomery County Indiana Courthouse?

Bankruptcy is a Federal matter which means that you must ask for your bankruptcy relief through a Federal Court.   The closest (and the appropriate) federal court where you can ask for bankruptcy relief is the Indiana Southern District Bankruptcy Court in Indianapolis.  All people that live in Montgomery County Indiana must file for bankruptcy relief through this court that is located in Indianapolis.

Does that mean I have to go to Indianapolis to find a Bankruptcy Attorney?

You do not need to seek an attorney that is located in Indianapolis.  Any Indiana attorney that is admitted to practice in the Indiana’s Southern Federal District is capable of filing for bankruptcy relief and represent a client in bankruptcy.  This basically means that you can use most bankruptcy attorneys throughout Indiana.

However, there may be some advantage of searching for bankruptcy attorney that is located closer to Indianapolis.  Most higher-volume, experienced bankruptcy attorneys are located closer to Indianapolis because of the larger market for bankruptcy there.   If you seek an attorney closer to to Indianapolis, you may find more options and possibly lower attorney fees for filing your case.

Our Bankruptcy Office’s Experience Working with Montgomery County Residents

We have always helped a great number of Montgomery County residents file for bankruptcy over the years.   We are very familiar with the area. People from Montgomery County like our office because it is easy to get to from I-74.  They also love our office because of the relaxed, country, Montgomery-County-like setting.   Let us know if you have any questions about getting out of debt.

Crawfordsville Indiana Bankruptcy Office Town Pictures

Because of our close proximity off of I-74, we serve people from Crawfordsville all the time. We offer very affordable fees and a very friendly staff to help you get through your financial troubles.