WHAT IS IT?
Under the bankruptcy laws, the Chapter 13 Trustee has the right to request to monitor your disposable income over the life of the plan. She requests this mostly in cases where she thinks that the income
of the person can change dramatically from year to year or she is not sure the income numbers given in the case are exactly accurate, i.e. clients who are self-employed, 1099 employees, clients with more than one job, client who is receiving unemployment or who is unemployed (housewife is included in this category), or if there has been a fluctuation in the recent past.
WHAT IF I DON’T WANT INCOME VERIFICATION LANGUAGE?
It is at the discretion of the Trustee and not the choice of the client, unfortunately. This is a requirement placed on you by the bankruptcy code and will be enforced by the judge in your case.
WHAT HAPPENS IF I JUST DON’T PROVIDE ANYTHING?
It is your responsibility to provide the required tax return AND expense information. If you don’t provide the information, your case will be in jeopardy of dismissal and all your debts/creditors will be reinstated. If you want to save your case from dismissal after NOT producing the required items each year of your bankruptcy, the judge may determine that you must retroactively come up with a large sum of money to continue/finish your bankruptcy.