If I retire at the end of the school term, and start collecting my teacher retirement, I will not be able to survive if deductions to my income continue during the after bankruptcy audit. No one seems to know how long an audit will last or when deductions will no longer be taken out of my earnings. I know there may be no difinitive answer, but what are the usual time considerations.
Contact the chapter 13 trustee to get a preview of your account. Odds are that someone has already looked at it, or will right away, because you are close to completing your plan. If things are on track, then retiring will not be a problem. You will likely get a lump sum payment in June or July to cover any leave time you might be entitled to, which could cover any shortfall in the chapter 13. Worst case scenario, your change in circumstance by retiring requires a modification to resolve the inability to pay the original payment. Most trustees will not object to a few months more of lower payments to make up any shortfall. Talk to your attorney about this.
I assume you are in a Chapter 13 Plan. If so, provided you make all your required plan payments , then no deductions to your income will be taken after you receive your discharge, at least not to fund a Chapter 13 plan. Wait until you finish out your Plan to retire. Call your bankruptcy lawyer for more help.
Law Office of Will B. Geer http://www.atlbankruptcyhelp.com
If you contact your attorney or you trustee, you should be able to confirm how much money remains to be paid under your plan. Assuming the last payment is made before you retire, there may not be cause for any concern (your payments should stop when the plan is completed). The audit itself could take some time, but that may not be a concern if the plan is paid in full.
If however, your calculations are off, you may want to contact your lawyer immediately to modify your plan to adjust for the reduce retirement income.
The bottom line, as others have suggested here, is see your lawyer. You may need to modify your plan, but you may not have a problem at all.
I agree that you should sit down with your attorney over the next couple of months and look at trying to coordinate the ending of your case. Alot depends on whether or not you are in a 36 or 60 month committment period, as 36 month cases end when a certain amount of money has been paid into the case, whereas 60 month case payouts can change. If you know what your income is going to be when you retire, you may be able to amend your plan, effective when you retire, to a lower amount until the end of the case. This will require coordination and the filing of the amendment a month or so before the change goes into effect, as you will have to give notice to the creditors of the proposed change and set a hearing out about a month. The audits can take anywhere from 30 to 90 days in my experience, and the deduction order will continue during that time. Another thing to consider is that, when you retire, you may be getting paid from another source, which may or may not know about the deduction order. This would be good for you because no money would be comming out, but could also be bad if there is a balance left to be paid on your case. Call your attorney today to go over your balance and options.
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