Just filled and new job before the 341

[tofargone]

Hi all,

I have been reading this forum for some time and just filled a 13 a few days ago.

Here is our issue. When we filed with the last 6 months pay stubs my wife was only working a couple of hours a week so we fell below the median income. Well either lucky or not she just got an offer from a job she has been trying to get for a while, but it is a lot more hours and money so now we are going to be above the Median be over 10K. Our plan we are submitting is paying 100% because we realy do not have any unsecured debt, it was all on our Mortgage that hit 5 months behind and a few low balnce CC's that we are going to pay off in full in the plan.

I am going to let my lawyer know of the change, but everytime I have a question I get the normal lawyer answer " Well it might be an issue, but it might not well just put it in and see what happens "

The only thing I could see happening is the Trustee changing it from a 5 year plan to a 3 which would cost us most of her increase.

Has anybody run into this, I am in the Western District in Wisconsin if that helps.

Thanks

[demismom]

We had a similar situation with the job situation, but we are letting our house go and have $25,000 in CC debt, we're HOPING to file Chapter 7, but are afraid of being put into 13.

Anyway, my attorney recommended I NOT accept the job, so I didn't. Sigh..... I really really wanted that job too. I know our situations aren't exactly the same, but I thought I'd chime in anyway.

[lrprn]

Welcome to BK Forum, tofargone! Glad you found us!

When we filed with the last 6 months pay stubs my wife was only working a couple of hours a week so we fell below the median income. Well either lucky or not she just got an offer from a job she has been trying to get for a while, but it is a lot more hours and money so now we are going to be above the Median be over 10K.

You are caught up in one of the grayest areas of the revised bankruptcy law. There's no clear answer as yet about how income increases like yours after filing Ch 13 but before your 341 meeting will impact your case. The law says that your bankruptcy estate is set on the day you file with the prior six months of income, but there are several court cases where bk judges have said that future income matters as well. This is why your lawyer can't give you a definite answer - there isn't one at the moment.

Just want you to know that our Ch 13 trustee asked us during our 341 meeting if we had had an increase in income since we filed. This is a common question to be asked, so if your wife's increased income starts before your 341 meeting, you are going to have to answer truthfully, "Yes" and your plan will be under question and can be revised to reflect your wife's additional income. That's why most attorneys will recommend not taking a new job until after the 341 meeting is over.

The only thing I could see happening is the Trustee changing it from a 5 year plan to a 3 which would cost us most of her increase.

It's very unlikely that this will happen. Currently the only folks who get to have 3 year Ch 13 plans are those who are barely above the median income and are paying back tiny %s to their creditors. Once your plan is set for five years, it is very likely to stay for five years unless your plan pays off your creditors who filed claims at 100% before that.

Hope this helps, and again, welcome to BK Forum! Ask questions, respond to posts, enjoy the camaraderie and sense of not being alone, and vent as needed - that's why we're here!

[tofargone]

Thanks IR,

I just talked to my lawyer and he said about the same thing. His advice was to take a close look at what our expenses will be when she starts her new job, he said that if they can look at projected income then they will have no choice but to let us use projected expenses. With Child care, increased fuel, her lunch expenses and uniforms I come in with about $100 more in Disposable income than with her before the job. He wants to put it all down on paper and then check with the Trustee to see what he wants us to do.

I guess I am not paying back 100% according to him, I forgot to add in my wifes 1996 back taxes which is about 9K so with that we are only at about 20% to unsecured. I guess if all else fails an extra $150 to go 100% is not the end of the world.

I just want this meeting to be over so we can start our payments and hopefully live our lives. Our new joke is that we have survived the last 3-4years with such a high level of stress that when it goes away we won't know what to do.

Thanks for your advice.

[treehugger1]

Welcome, tofargone. Its interesting that a trustee probably wants to know about projected increase in income, but not projected decreases in income. Although the form clearly asks for any explanation related to expected changes in income, I've heard that our local trustee tends to care more about an "increase." If there is a projected decrease, one has to wait until it is "realized" and then modify the plan. What a system.

[SinkingFast]

I think you're on the right track, ToFar.

Even tho your wife will be earning more money, as you noted, there will be increases in expenses as well. You've thought of many, but you probably won't know exactly until she's actually working for 2-3 months.

Welcome to the Forum!! Feel free to hang out and chat any time!!

[gunsmoke]

don't say a word. if the trustee wants more money, he will let you know

[workinghard]

341 meeting

I had my 341 meeting today and it went ok, the lady was very nice actually. My husband had to explain his job was ending this week and that he was hoping to land a new one in the next couple of weeks. They just want to know when he gets the new job to let send his check stub. Also, I told them I already sent my 1st payment in so they were glad to hear that.

[Spartan]

".....Our plan we are submitting is paying 100% ...."

If you are paying back 100%, then it really should NOT matter at all if your income increases.

[wrinkleigh]

Can your wife accept the position -- but have her start date be after your 341?

That way if asked -- you can truthfully say there has been no increase in pay since you filed.

[tofargone]

She had to start a week ago so we will have to disclose it if asked. We have all of our backup ready, the attorney said that we shouldn't offer any information unless asked and then if we are asked we have all of the documentation ready.

We are going to play it by ear. Of course the trustee already will have recieved his payments by the time we meet, he sent my employer a letter to get it withdrawn right away. Luckily my lawyer called me and warned me so I could head off the letter and get it only to my boss instead of throughout the company ( I work in a small company and my department does payroll ) She was very good about all of it, but it pissed me off since I requested to not have a garnishment to pay the trustee, I never even had a chance to explain why to the trustee before he sent all the info to my employer.

I went into this whole thing with high hopes of a fair and decent trustee, I guess I will have to bite my toungue and bide my time until I either complete the plan or buyout of it.