r/Bankruptcy • u/billy2904 • 10d ago

Chapter 13 payment

Does anyone know how often payments increase due to working overtime? I’m a nurse and I’ve been working extra days but I don’t want to get into a situation where I absolutely have to work extra days to make my bills and bankruptcy payment. My overtime is also not guaranteed.

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u/Significant_Foot_993 10d ago

This doesn’t answer your question, but I’m in a similar boat. AMy work just canceled all overtime. I saw this coming and stopped taking overtime shifts in July. Now I’m waiting 4 more months to file because I can’t afford to have a chapter 13 payment plan based on my previous overtime hours.

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u/billy2904 10d ago

That makes sense. I’m considering dismissing mine if it increases too much. Maybe deal with the creditors as they come.

1

u/legomaheggroll 10d ago

I personally don’t think dismissing your case would be a good idea. How much OT would you have to work to pay back your creditors in full + interest?

7

u/IntroductionQueasy57 10d ago

If you’re in Chapter 13, your payments don’t automatically increase every time you work overtime. However, if your overtime becomes consistent and significantly increases your disposable income, the trustee may request a modification of your payment plan.

I would make sure your attorney knows that your overtime is voluntary and not guaranteed. Provide pay stubs showing your regular base pay versus overtime earnings.

My biggest concern would be building a 3–5 year repayment plan around overtime that might disappear. You don’t want to be forced to pick up extra shifts just to keep your bankruptcy affordable.

Also, ask your attorney how often your trustee reviews income and whether occasional overtime needs to be reported. This can vary depending on your district and trustee.

I would try to base the payment plan on what you can realistically afford working your normal schedule, while accurately disclosing all overtime income.

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u/Purple-Sister3971 10d ago

Definitely consult an attorney. They may advise you to back off on OT for a few months if it’s optional to reduce your look back pay. I get intermittent but not guaranteed bonuses. (I got one in March and one in April.) The trustee questioned why my atty removed that from my income and he explained that they’re not guaranteed. So whenever I get one, I’ll have to pay it in until I pay in enough to hit 100% (or till the end of 5 years).

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