Wage Benefit from Auto Policy

by Nan

I am receiving a wage benefit of $5,000.00 for lost wages due to a auto accident. Do I have to give this money to my chapter 13 Trustee?

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Nov 21, 2011
Wage Benefit from Auto Policy
by: Debtcollectionanswers

Nan: When you file for bankruptcy, you are supposed to list all sources of income on the bankruptcy-related paperwork that is filed with the court. So if you were receiving that income when you filed for Chapter 13, it is important that you let your bankruptcy attorney know so he can amend your paperwork. If you filed bankruptcy without an attorney's help, you will need to obtain the appropriate form from the bankruptcy court so you can amend the information you provided yourself. I also recommend that you tell the trustee in your bankruptcy right away. Either way, you will probably have to pay more on your reorganization plan than you have been paying. Although you may not like the fact that your monthly plan payment is likely to increase, if the trustee finds out that you are receiving this income and did not report it, the consequences could be very negative for you.

If you started to receive the income after your reorganization plan was in place, I am not sure if you are obligated to report the new money or not because I am not an attorney. If you are working with a bankruptcy attorney I recommend you consult with him or her. If you do not, then talk with the trustee in your bankruptcy or contact a consumer bankruptcy attorney in your area by going here a free consultation with a bankruptcy attorney.

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