Expert: Terry Leeders - 8/9/2009

Question
I am in the middle of a Chapter 13 Bankruptcy.  I am disabled and getting ready to apply for disability.  Disability attorneys are paid by getting a certain percentage of your disability backpay.  Can a Trustee garnish the portion of your backpay that is (by law) supposed to be paid to the disability attorney?

Answer
Your confirmed plan stays the same, unless you petition the court to modify it based on the change of income.  The trustee/court understands that you have no control of what deductions are taken out, so they will take the deduction into effect when calculating disposable income.