• Spectacular!

    I liked your fast, friendly service. You were all knowledgeable in the area of bankruptcy. Your treatment of me as a client was spectacular! You were great at promptly responding to my questions and concerns. I loved that you provided courteous and quick responses to all my questions.
    --Donna
  • Highly Recommended!

    I have worked with Seth and he is the utmost professional in how he works with his clients. If you need an attorney you can trust I would highly recommend the Law Office of Seth Hanson.
    --David
  • Very Professional.

    Everyone was very professional and efficient. Seth, and everyone that I had contact with were very knowledgeable. I was very pleased with how we were treated by his staff. My questions were always answered promptly. I was very pleased with the service I received and would not hesitate to refer someone to your firm.
    --Anonymous
  • Non-judgmental.

    You were very open and answered all of my questions. You never made me feel like I was asking a dumb question. I was comfortable with your knowledge of the law. It was hard for me to make this decision to move forward in my life. Everyone was friendly to me and respectful. Non-judgmental. Every question I asked was answered promptly and appropriately. I would recommend you.
    --Anonymous
  • More Than Expected!

    I found the firm's representation to be more than what I expected. I was always kept in the loop, all my questions were answered (whether or not I asked more than once the same question), and I felt completely supported by the firm staff when going through this (at times) scary ordeal. Thank you again.
    --Joanna
  • Very Impressed!

    I liked that you had very friendly, caring staff. You were all very knowledgeable. Your treatment towards me was excellent and you quickly responded to all my concerns. If a friend asked of your overall impression, I would say that we were very impressed and we would recommend you to them.
    --Danielle

Income Increases During Chapter 13 Bankruptcy

A typical Chapter 13 plan lasts five years which is a long time.  Circumstances, jobs, and incomes can change in five years

Disposable Income in Chapter 13 Bankruptcy

The basis for Chapter 13 payments to the bankruptcy trustee is derived from disposable income, or the money left over after the payment of allowed monthly living expenses and priority debt. If you have money left over after expenses reasonably necessary to support yourself and your family then you must pay this amount to your plan each month. This income is known as disposable income.

Changes in Income

Part of the bankruptcy paperwork we file with the court allows us to describe anticipated changes in income. These can include anticipated layoffs, raises, promotions, bonuses, reduction in hours, or overtime. If you expect any of these, it’s important that we list them in the bankruptcy paperwork.

Best Effort in Chapter 13

When filing for bankruptcy protection under Chapter 13, a debtor is required under the bankruptcy statues to put forth his or her best efforts to repay as much of the debt as is reasonably possible. If you have an increase in income during the five year Chapter 13 process, the trustee and court may require an increase in your plan payment to comply with the good faith requirement. If the bankruptcy trustee has reason to believe that their might be a change in income, the trustee often times will ask for tax returns and pay stubs to review any possible changes in income. Usually the trustee’s office will only do this if they suspect a change in income.

Because of the long-term financial and personal consequence involved with filing bankruptcy, it is always recommended that you speak to your Auburn bankruptcy attorney before filing who can help answer questions and advise you on changes that may occur during your Chapter 13 bankruptcy.

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