Job Offer

[PhilN]

I just filed ch.13 yesterday and I will have a job offer tomorrow making a considerable amount more than I making now. How does this affect my bankruptcy going forward if I accept the job offer??

Phil

[Peevee]

It will just make you pay more back. Your payment will be based on disposable income. I take it you have already filled out everything to file. Did your lawyer tell you what you would be paying back?

[lrprn]

I just filed ch.13 yesterday and I will have a job offer tomorrow making a considerable amount more than I making now. How does this affect my bankruptcy going forward if I accept the job offer??

There are two issues here:

1. If you accept the job tomorrow and if your 341 meeting is scheduled out farther than four weeks from your filing date, it's possible that you could start work and be paid the higher income before your 341 meeting. A common question asked by Ch 13 trustees during the 341 meeting is if you have seen a change in income since you filed. If you have and your latest paystub reflects this, then lying is not a good idea. Since you say the income increase is "considerable", that gives you much more disposable income than you had at filing time and your monthly payment is likely to increase accordingly.

However, if you don't get your first higher paycheck until after your 341, then you can say "no" if your trustee asks the "any difference in income since filing" question. First hurdle cleared.

2. The next issue is if your Ch 13 trustee tells you that he/she expects to be told about pay increases - either an increase over 10% of your filing income or any increase at all. Since I'm guessing that "considerable" means more than a 10% increase, that will have to be reported. You'll be right back having a lot more disposable income and your payments are likely to be adjusted upwards accordingly.

If you haven't already, immediately ask your lawyer about this situation and get his/her opinion about what to expect with your trustee. You might be very lucky and draw one of the few Ch 13 trustees who don't care what happens with your income after filing. (And congratulations if the job offer comes through as expected!)

[PhilN]

It will just make you pay more back. Your payment will be based on disposable income. I take it you have already filled out everything to file. Did your lawyer tell you what you would be paying back?

Yes everything has been filed yesterday. I have yet to talk to my lawyer. I have a lunch meeting with my potential boss tomorrow, so I am going to be calling my lawyer tomorrow morning.

There are two issues here:

1. If you accept the job tomorrow and if your 341 meeting is scheduled out farther than four weeks from your filing date, it's possible that you could start work and be paid the higher income before your 341 meeting. A common question asked by Ch 13 trustees during the 341 meeting is if you have seen a change in income since you filed. If you have and your latest paystub reflects this, then lying is not a good idea. Since you say the income increase is "considerable", that gives you much more disposable income than you had at filing time and your monthly payment is likely to increase accordingly.

However, if you don't get your first higher paycheck until after your 341, then you can say "no" if your trustee asks the "any difference in income since filing" question. First hurdle cleared.

2. The next issue is if your Ch 13 trustee tells you that he/she expects to be told about pay increases - either an increase over 10% of your filing income or any increase at all. Since I'm guessing that "considerable" means more than a 10% increase, that will have to be reported. You'll be right back having a lot more disposable income and your payments are likely to be adjusted upwards accordingly.

If you haven't already, immediately ask your lawyer about this situation and get his/her opinion about what to expect with your trustee. You might be very lucky and draw one of the few Ch 13 trustees who don't care what happens with your income after filing. (And congratulations if the job offer comes through as expected!)

Irprn,

Thank you....i hope it this job comes through as well. I've been working on it for over a month. :-)

Ok...so I filed yesterday and I probably wouldn't start the new job till the first week of september and then won't get a paycheck from the them for two weeks after I start, so I think I might be safe with that.

The increase in pay would be about 26%. I guess I wouldn't be too upset if I had to tell them. I think that with the increase in income and the amount of unsecured there is, I could potentially have a 100% of the unsecured pay in a 36 month time.

You're right that it really comes down to how strict the Trustee will be. In the Tampa area, there are two trustees. One, my lawyer says is very good to work with and the other is like pulling teeth to get anything. I am really hoping I get the good one!