Job changes need advise

[helpless]

DH has just been offered a new job. Although it really isn't a step forward, he just has to leave the company that he is at now so he doesn't lose it mentally. The company that he is with now he has a company car, this new company will be giving him a car allowance, so now comes the fun part. We have to get a car. How difficult will it be to have the trustee look at the car allowance as just that and not extra income because unfortunately he is going to have to get permission to buy car? Anyone else been in this predicament. What is the process? Get trustees approval and then find car. Also he will be getting commission, how is that factored in when you don't even know what it will be? Thanks. He has to give his decision to them on Monday. Also, no mention of bankruptcy in any of his four interviews. Kept waiting for them to ask.

[Minnymouth]

Are you in a Chapter 13 payment plan now???
If so all income changes over 10% must be disclosed to the Trustee..... and commissions and auto allowances would also fall in this category.
Permission to purchase and auto would have to go thru the trustee.....

Let us know what the trustee says and h ow it affects your 13 plan..

Minny

[13inOR]

During our chapter 13, our car was dying so we asked for approval to purchase one. We later decided against it as my husband was able to do a few things to keep the old beater going a while longer. BUT--here is what the trustee required, had we decided to do it:
1.Car must have trustees approval on several levels--meaning you need to find the car, secure financing, convince the dealer to hold the car for possibly 1-2 weeks.
2. submit all info regarding the car to the trustee for approval in these areas:
cannot be over $10,000 and over 100,000miles (I believe that was the mileage requirement) cannot be an SUV,truck, or sports car due to the fact that insurance would be more on those. Also, I believe the interest rate could not be over 24% and the payment no more than $250.
So, while it may differ slightly from trustee to trustee, everything I have read on this forum pretty much indicates this experience is typical.
It is complicated, but it can be done, others have accomplished it. We personally decided to wait, and were able to.

[helpless]

Minny, we are in a Chapter 13 right now. Been in it for 10 months and have 26months left. Paying 23% to unsecured. Only secured is car which only has $800 left on it and then all payments go to ccs. Here is the sticky part though. On paper the job is less than he makes now, but with commissions he should make more, but how do we go about that. Lawyer told us to just redo the budget and then if we need to lower payment, we can and it will just add time to CH13. At first, I didn't like that idea, but once I started thinking about, we just need to make it to the magical 36 month and then refi. I am in pre oct 17 Ch 13. Car allowance from company is $630 a month for car, insurance and maintenance and I am curious to see what the trustee thinks of this. Wish we knew now before making the decision. I guess that only time will tell.

[Minnymouth]

I do not think that a car allowance thru your DH job would have anything to do with your bankruptcy........ A commission check that he might receive - YES.

A car allowance is just that. Sometimes they allow you just mileage and maintenance on your own vehicle, often they even supply you with a vehicle, gas card, etc. But the catcher to this is that the COMPANY pays for all this so its not income too you............ and the Trustee cannot treat it as such...... The commission check, yes he can count that as income...(that is money earned on percentage of sales, etc).

If he takes the job, all this needs to be explained to the Trustee/attorney handling your Chapter 13. They need to be aware of it, but only the commission check should be considered in your bankruptcy since the rest is all company funded. (Example: if I give you my gas card and say use it - its my expense, my card - nothing is out of your pocket and its used on my expenses by you. If you use your own vehicle, use my card, I am paying for any expenses incurred on your vehicle.

Let us know what you find out about this.... cause laws might have changed over the years.

[SinkingFast]

I don't know if it's possible or not, but it seems this is something that could be explained to the Trustee.

A benefit of your Hubby's current employment is the use of a car, paid for by the company. If you could figure the cost of that car on a /month basis,........ Have Hubby ask at work, under the pretense he needs to know the info for some other reason. Think of your reason in advance.

If Hubby can't easily get the info at work, do some checking on your own. Find out how much to lease a vehicle similar to the one Hubby currently drives. Call your insurance agent and ask how much it would cost to insure a vehicle similar to the Company car. If the Company pays for the gas and maintenance, figure in those costs as well. Determine the value of that benefit basis and then you have hard numbers to compare side by side to the Trustee.

The car Hubby currently has is worth this value in $/month. New job will pay $X/month for Hubby to lease a vehicle for job related use. Maybe both numbers will be close and you won't really have an increase in income there.

I'm amazed your attny didn't think to do this. It's a simple numbers comparison of a "benefit". Car, medical/dental/vision insurances, disability insurance, retirement. They're all benefits of the job. Should be treated as such.

[helpless]

I am emailing my lawyer today. I hadn't mention to her how much the car allowance was just how to go about getting trustee approval. I also need to ask her about how they figure sales %, he is guaranteed a certain percentage til the end of the year, so what happens after that? I will let you know what she says. P.S. I hope that I don't jinx myself, but my lawyer has always responded to my emails, usually the same day.

[helpless]

Yes, my attorney emailed me back within 10 minutes. Record time.
Trustee can not look at car allowance as income and she said as far as commissions go that you have to get an estimate from the company of what they think it should be. I told her that it should be 1% of 1million to 1.5Million. She said that we will use the lower number especially since it will be the first year. Once he accepts job, we will redo budget and get approval for car through trustee. Does't want to ask for car approval until he has accepted the job because right now we have no extra income to try and get an approval earlier than that. So, in reality, payment to trustee should be lower because we are going from paying $40 a check for medical to $184. Gas will be budgeted alot higher than it was last year and was told to get those braces for my daughter. I really don't want to lower the payment to trustee, but don't want to be hog tied either. What is every one opinion? Lower payment and then hopefully refinance after 36 months? Or try to keep it the same and be done in another 26 months. Thanks.