My husband is getting a significant raise. Is that going to mess up our bankruptcy?

I received this exact email over the weekend, and the answer is one of those those annoying “depends” kinds of answers.  getting a raise

If you have not filed bankruptcy yet, a significant pay raise may push you out of chapter 7 territory into a chapter 13 repayment plan.  Or if you are planning on a chapter 13 repayment, then it may make your plan payment even higher.

If you have already filed bankruptcy, then it depends on which chapter and where you are in the process:

Chapter 7

If your pay increases in the month between filing the case and meeting with the bk trustee at a 341 Meeting of creditors, then it could hurt you.  The trustee could recommend that the U.S. Trustee’s Office review your case to see if you still qualify for a chapter 7.  I have NEVER seen this happen.

If your pay increases after you file and after you meet with the bk trustee, it is not a problem at all.  To be technical, it will not “mess up” your bankruptcy.

Chapter 13

If your pay increases between filing the case and meeting with the trustee, your plan payment will probably increase as well.

If your pay increases between the 341 meeting and confirmation, your plan payment may also go up.

If your pay increases after your case is confirmed, it should not affect your case or payment unless the trustee had ordered some kind of income review 6 months down the road.