Extra Income during 13?

[jamist649]

I am just over a year into my BK13. Our payments are 170/mo, paying house/cars outside of plan with 0% to unsecured. Our income is (to say the least) tight after all bills are paid. I am considering taking a second job (part time, TEMPORARY) to supplement our income just until we can get through Christmas, and get a little breathing room. I'm wondering if I need to let the trustee know. If I work an additional 20 hours a week only to give the trustee half of it or more, I'll just stay home and hold the sofa down! Any advice?

[mickeysfriend]

Thanks for asking! I'd like to know the answer to this too!

[laurannm]

I think it completely depends on your trustee and how they handle additional income. I would strongly suggest you talk to your attorney about it and get his\her advice.

How a trustee handles increased income varies widely from district to district. Seems like some trustees don't care at all as long as you make your payments on time, others want to know about every extra dollar that you make. Still others only want to know if it is a certain percentage (10% is a common number I see people mention).

[Flamingo]

Your plan was based on the income you were receiving at the time you filed. If that amount increases so does your disposable income and, as laurannm states, your attorney needs to be informed of this to determine whether or not the Trustee needs to be informed.

[workinghard]

and this brings up a good point - what about inflation? Food prices are up 10% from last year, energy costs up over 30%, gas $4.00 a gallon.... taking a second job is about survival not extra income. I'm at this crossroads myself and hanging by a thread and feel like I am back in the same spot I was b4 I filed the 13.

[Flamingo]

and this brings up a good point - what about inflation? Food prices are up 10% from last year, energy costs up over 30%, gas $4.00 a gallon.... taking a second job is about survival not extra income. I'm at this crossroads myself and hanging by a thread and feel like I am back in the same spot I was b4 I filed the 13.

I've been in your position and faced a five year plan. You are given "wiggle room" in your Plan when it is confirmed to successfully get through it. The key is to budget, budget and then budget again and buckle down the hatches and ride it out. It's far from easy, especially when costs go up. Thankfully now gas has gone down. One thing that helped us get through our Plan was to trade services with handy friends...if we needed car or house repairs that we could not do ourselves, we asked friends to help us out with their expertise and in return we would babysit for them, do lawn work, etc. or anything to help them out. We saved a fortune doing that. We also on weekends would get together at various friends houses and do dinner with us hosting a dinner maybe once a month - we had three or four other free weekends on saving food costs that way. When our turn came, our friends knew we had it tough and brought things anyway. There are all kinds of ways to make things work; Chapter 13 is far from easy and a big, big eye opener.

You will have to look at what you are spending and see if you can make cuts anywhere just as everyone has had to do on a fixed income. However, if you are having severe difficulties and cannot make your plan or other payments (i.e., utilities, mortgage, etc.), contact your attorney to see about a Plan modification.

Adding income to your plan by taking on a second job, selling online, etc. increases your disposable income that is available to creditors. If one takes on a second job, one's attorney needs to be advised.

[BKParalegal]

Now for reality. The trustee is going to look at your past years income (SOFA Question #1) if there are huge swings year to year, and month to month. He/She/It may be interested in having you send a copy of your tax returns every year to see if your income jumps (up is what he cares about). No attorney worth his salt is going to let the trustee increase your payments due to a part time job. He/She will make sure that "oh so coincidentally" your expenses went up as well and offset the extra income. Trustee's know the game and they definitely know that is not a battle they want to pick. Which is why you will be wasting your time and the attorneys time letting him know that your part time job at Walgreen's just netted you an extra $120.

Good Luck

[jamist649]

Thanks BKParalegal.

[Flamingo]

Jamist649...BKParalegal gave you great information but as you state in your initial posting, you are just not bringing in an extra "$120." If you do as you state and work from now until Christmas, at 20 hours at week at say, $7.00 per hour ($140.00 per week), that will give you approximately $2,240 of income prior to Christmas. That is nothing to sneeze at when it comes to a Trustee. We had a small inheritance of $3,000 during our Plan and our Trustee took half of it. Before you go ahead on your own and mess up your Plan, I suggest you ask your attorney if you can go ahead and earn that income.

[BKParalegal]

An inheritance is a windfall and does not fall into the scope of what I discussed, just as it is policy of most trustee's to let you keep the first $2k of your tax refund and they keep the rest(it varies by district, but this is common). Additional temporary income, where there will be additional expenses involved is not the same as cashing a check for an inheritance. My advice still stands.


Good Luck

[workinghard]

Thanks I have a call into my attorney we'll see what he says. At least you gave me some hope

contact your attorney to see about a Plan modification.

[road warrior]

re: extra income during 13

I just asked my lawyer this exact question earlier this week. I wanted to know if I or my wife got a part time job if the trustee would want more money, or if we could have our plan modified because my wife's child support decreased that she gets from her x.

Lawyer advised me to get a part time job, the trustee won't take any of that money.

Hopefully he's right because that's what we are being forced to do. I tore my rotator cuff last month and am looking at being off work most of the winter which will cause me to lose almost $10,000 in overtime.

Hopefully work. comp. will take care of everything and I can get a settlement sometime next year but I'm not holding my breath.

[Flamingo]

I just asked my lawyer this exact question earlier this week. I wanted to know if I or my wife got a part time job if the trustee would want more money, or if we could have our plan modified because my wife's child support decreased that she gets from her x.

Lawyer advised me to get a part time job, the trustee won't take any of that money.

Hopefully he's right because that's what we are being forced to do. I tore my rotator cuff last month and am looking at being off work most of the winter which will cause me to lose almost $10,000 in overtime.

Hopefully work. comp. will take care of everything and I can get a settlement sometime next year but I'm not holding my breath.

You did the right thing and asked your attorney. They money you or your wife will earn will replace the drop in child support received by your wife so it is basically a "wash" situation. Since you have not experienced your "$10,000 in overtime" loss yet, nothing can be done because the event has not yet occurred. Keep your attorney informed when that loss occurs and also when you receive your WC settlement.

[breathe]

If I work an additional 20 hours a week only to give the trustee half of it or more, I'll just stay home and hold the sofa down! Any advice?

Regardless if the trustee takes 1/2 (which may not happen) you still get to keep 1/2. And if that 1/2 helps out, why not take it.

[workinghard]

The attorney says we cannot modify our plan because it's 60 months and the court won't take into account any inflation etc.

I'm not sure if this advice is accurate - anyone have any comments - I've been in the plan for almost a year now.

Thanks

Thanks I have a call into my attorney we'll see what he says. At least you gave me some hope