I have filed for chapter 13 bankruptcy and am trying to modify my plan; how do commissions work when they are not guaranteed?

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   Ian LeavengoodPro

   Tampa Chapter 13 Bankruptcy Attorney

   Contributor Level 12

   

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   Answered December 29, 2009 20:04. Your Trustee is likley going to require that you provide not only proof of income (i.e. paystubs) for the six-months that pre-date the filing of your petition but will also likely request paystubs for a few pay periods after your petition has been filed. For Debtors that have jobs with fluctuating income (i.e., commissions, performance-based bonuses, etc.) this is pretty much standard practice. The Trustee's office will use this information, your testimony at your 341 Meeting of Creditors and your last two years tax returns to review your proposed plan and best estimate your disposable monthly income, or the amount your will be required to pay the trustee each month. If the Trustee thinks the proposed plan payment is fair, you will likely get a favorable recommendation. If not, the Trustee will give you an unfavorable recommendation and request additional documentation or an amended plan from you or your attorney.
   
   In some cases, after you have worked out the larger issues, the Trustee will make a condition of the confirmation of your plan (i.e., Judge approval of yoru plan) the continuing submission of annual tax returns to the Trustee's office during the life of your plan. Essentially, they want to monitor your future income. If they do request future tax returns, they are not trying to single you out but rather are doing what there are required to do -- make sure your disposable income is turned over for the benefit of your unsecured creditors during your commitment period (i.e., plan life: 3 - 5 years).
   
   As is true in all legal matters, you should sit down with an experienced bankruptcy attorney and have them go over your actual income, tax returns and budget as well as go over any expected future changes to your employment, your income, or your expenses. The attorney should then be able to file an aggressive, yet workable, chapter 13 plan. Good luck.

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