Hypothetical Question #1 - New Job

[anonymuse]

Just doing this for fun (yes, I'm having a very boring Saturday night.)

Situation:

You're in the middle of a Chapter 13 repayment plan
You're paying back 25% of your unsecured debts

Question:

You receive an offer with a 50% raise and increased salary will pay back your creditors at 100%--do you take the job?

[FilingOnMyOwn]

Of course! Why would you restrain your own future just to 'punish' others?

[lrprn]

Honestly, I'd check with my BK attorney first to see if there are any hidden traps here lurking to catch the unaware.

For our newer members who might not be aware, Anomymuse's question is based on the fact that in most states if you receive a 10% or more increase in your income at once (get a big raise or promotion) or a windfall (inheritance, win the lottery, etc), the trustee must be notified. That extra money will be headed straight to your creditors via an increase in your monthly payment and an increase in their payback %. You would be in Ch 13 for the same length of time, just providing more money (25% vs 100%) to your creditors every month.

If I really wanted the new job and it was a great opportunity with a better future for me after Ch 13 was over, then it would be worth it. Wouldn't be a decision I would make lightly though - in today's "profit or die" world, there are millions of people who got great promotions and then were laid off within a year due to "downsizing, right-sizing, reorganization"...whatever they call laying good, hardworking, decent people off just so CEOs can show a tweaked "profit" to their shareholders at the end of the quarter.

Of course, if you did lose the new job, then it's entirely possible you could convert to Ch 7 and have the whole shootin' match discharged within a few months...hmmmm...have to give this more thought!

[aa06a47]

Absolutly, after the period of time left in you BK, you would still have that job (hopefully) and would benifit from the extra income for a long time. It might even provide opportunities to even higher paying jobs.

Of course, salary isn't the only thing you should look at. If you were to get that type of opportunity, you must also look at the risks associated with that job. I mean, if it is scrubbing windows on the sears tower, I would pass.