When you decide to file Chapter 13 bankruptcy, you may have many questions regarding your finances going forward. There are strict rules you must follow to stay within the guidelines of the court. The main one is following your repayment plan. However, what happens when you have changes in your income that give you some extra money each month. Can you put that into a New Jersey bank savings account?
According to PocketSense, whether you can create a saving account depends a lot on the exact increase of your income and your bankruptcy plan. You have to report any change in income when it is a 10 percent change. You would have to meet with your trustee to see how the increase will affect your repayment.
Typically, if you are not already at a 100 percent repayment of your debts, meaning your plan is set up so you completely pay back all creditors, then the extra income will go towards increasing the percentage of your repayment amount. The court will have to step in to make this change at the request of your trustee.
If you are at 100 percent repayment or the amount you income increased was less than 10 percent, then you are free to do with it as you wish. Creating a savings account is a very good idea. It offers you some financial stability and a safeguard for the future in case you end up in financial trouble again. This information is for education only. It is not legal advice.