Increase in Income

Once again, you are under a court order to inform the court of any “significant” increase in income during the course of your Chapter 13 plan.

What is a significant increase in income?  It is easier to tell you what it is not.  

1) It is not a temporary increase that is not otherwise significant.

2) It is not a “cost-of-living” annual increase given often by to government employees and social security recipients.

3) It is not a small one-time bonus.

4) It is not a second part-time job where the hours are low and the income is needed to go towards reasonable and necessary living expense that may have arisen after filing.

What is definitely an increase in income?

1) A change in job where your income has increase significantly.

2) A pay raise or position change where the income exceeds just a cost-of-living adjustment.

3) A significant bonus or change in a bonus structure at work that brings your income significantly higher.

4) Getting a second job with significant amount of hours and therefore pay.