Payments Could Get Larger
Interestingly enough, when people decide to go for a Chapter 13
bankruptcy, they assume that this will help them out. What this
means is that instead of writing off all of your debt like you
do in a Chapter 7 bankruptcy, you enter into a payment plan with
your creditors and the bank where you do not have to pay back
everything that you owe. Not only that, but you get a payment
plan that you can afford. But sometimes that payment plan can
change.
If you find that you are making more money at work – perhaps you
are getting more hours, or perhaps you got a raise, etc. – you
can almost always count on the fact that your payments are going
to increase as well. As you move along through your bankruptcy
your information financially speaking will be reported to the
trustee that is handling your case. This trustee will then
evaluate the amount of money that you are paying to your
creditors. If you are making more money, they have the right to
increase the amount of money that you are paying them.
Conversely, if you are making less money, you have a case for
lower payments as well.
This is important because there are those out there that would
believe that they are making more money so they might be able to
get a little more ahead. However, they will not be for long if
you end up paying more for those same debts.
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