In a Chapter 13 bankruptcy, child support received by the debtor can be treated differently depending on the circumstances, the jurisdiction, and the stage of the case. However, it is often considered part of the debtor’s income when determining the ability to fund a plan. A question arises, when child support paid to a debtor increase after plan confirmation, could that result in a higher modified chapter 13 plan payment?  Will a motion to modify the plan be filed by a trustee or creditor?

11 U.S.C. Sec. 1329 Modification of plan after confirmation

“(a) At any time after confirmation of the plan but before the completion of payments under such plan, the plan may be modified , upon request of the debtor, the trustee, or the holder of an allowed unsecured claim, to-

• Increase or reduce the amount of payments on claims of a particular class provided for by the plan”…

According to Lundin on Chapter 13, as a result of unanticipated good fortune “reported decisions have aggressively allowed trustees and unsecured claim holders to modify plans to increase payments…” see Keith M. Lundin, Lundin on Chapter 13, Section 127.9 (last visited July 15, 2026).  Usually, the modifications are triggered by substantial and unanticipated changes in circumstances such as personal injury settlements, lottery winnings, inheritances, stock option cashouts, large salary increases and sale or refinancing of residential real property yielding large equity distributions. id. An increase in child support income is not commonly regarded as a sufficient basis for plan modifications.

The relevant inquiry is not whether child support constitutes disposable income in and of itself, but whether an increase in child support affects the debtor’s projected disposable income and, consequently, the debtor’s ability to apt creditors.

Seeking to modify a confirmed plan to increase payments due to higher child support income after confirmation is subject to a different standard.

Generally:

• Child support payments received by a debtor are typically included in the debtor’s income disclosures.
• However, bankruptcy courts often recognize that child support is intended for the benefit of the child, and debtors may be allowed to use those funds for the child’s reasonable expenses rather than paying them to creditors.
• If child support increases significantly during an active Chapter 13 case, the trustee or an unsecured creditor may argue that the debtor’s financial circumstances have improved and seek a plan modification under 11 U.S.C. § 1329.
• Whether a higher plan payment is required depends on factors such as:
  • Are the increased support payments based upon ongoing needs of the dependent children
  • What is the breakdown, if any, for the support increase-is it for child support arrears?
  • What is the amount of the increase, is it substantial?
  • Whether the increase is offset by increased substantiated child-related expenses.
  • What is the local bankruptcy court precedent.
  • The specific terms of the confirmed plan.
  • Whether the trustee chooses to pursue a modification.

For example, if child support increases by $1,000 per month but the debtor can show that the additional $1,000 is almost entirely being spent on the child’s housing, food, medical, educational, or other reasonable needs, a court may be less likely to require that the entire increase be paid into the Chapter 13 plan.

When reviewing this question, it is helpful to consider cases that examined child support in the context of disposable income. For example, in In re: Brooks 784 F3rd 380 (7^th Cir 2015) the court addressed whether an above-median debtor may exclude child support payments from disposable income calculations. It said the courts below concluded that any award of increased child support may be excluded from disposable income except in the rare case where an award appears so excessive that an exclusion would be an abuse of the bankruptcy system.  Further, child support payments are presumed to be reasonably necessary and therefore excluded from the calculation of disposable income. In another case:  In re: Brown 1:16-bk-12609, 2017 WL 2189557 (Bankr. E.D.VA May 17, 2017) the court asked how should child support payments be treated for an above-median debtor?  It held, child support income must be reported on the Means Test forms, however it may be excluded to the extent necessary for the support of the minor children. Similarly in In re: Tonya Williams Bankr. No. 24-10381, 2025 WL 971544 (Bankr.S.D.GA March 31, 2025) child support must be fully disclosed on Schedules I & J although it is excluded on Means Test Form 122-C.

Final Observations:  It is unlikely that a court will approve a modified plan proposed by a trustee or creditor based solely on an increase in child support income.  Courts generally view child support as income intended for benefit of the minor children rather than disposable income available to fund a larger plan payment. Although it should be listed on the Schedules I and J Budget, on the initial Form 122-C it may be excluded from CMI calculations. There may, however be exceptional circumstances in which a substantial increase could draw greater scrutiny from a court. Even in those situations, debtors may demonstrate that the increased support corresponds to increased expenses for their children, thereby justifying the continued exclusion of those funds from disposable income. 

(Printed with permission, NACTT Academy, Considerchapter13.org, August 31, 2026)