Expert: Terry Leeders - 7/24/2008

Question
QUESTION: I filed chapter 13 two years ago.  Last year, I received a job offer in another state and increased my income about $25k/year.   Can the trustee modify the plan as a result of my higher income,

ANSWER: while they reserve the right, normally your plan will stay the same as confirmed 2 years ago.

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QUESTION: Can you contribute to a 401K while in a Chapter 13?

Answer
While you cannot budget for it in your bankruptcy schedules, since all of your 'disposable income' needs to go to your case, once your case is confirmed, and you work your budget so that you do have extra, you can contribute, but the court won't let you add that as a necessary expense.