Taking a new job, with less pay, during Ch. 13?

[cspa522]

My husband hates his job. Just hates it. We are discussing him making a career change, which will probably mean a severe decrease in pay. Has anyone else done this voluntarily during a Ch. 13? Because it's a voluntary decrease in pay, would that adversely affect our monthly payment to the trustee? Meaning - would they decide that because we voluntarily took a pay cut would the courts see this as irresponsible and therefore keep our monthly payment the same, or would they lower it to reflect the new, lower income?

Thanks for the help!

[NowImDownInIt]

They can't just refuse to adjust your plan. This is risky though and you need to make sure that your plan has wiggle room. Are you at 60 months?

Do you have secured/priority debts that can't be discharged in a Chapter 7? You can consider converting.

[cspa522]

They can't just refuse to adjust your plan. This is risky though and you need to make sure that your plan has wiggle room. Are you at 60 months?

Do you have secured/priority debts that can't be discharged in a Chapter 7? You can consider converting.

We have a house that we are keeping out of the Ch13 plan. We haven't filed yet, are doing that on November 22nd. Per the first round of numbers our attorney has quoted us, we'd have plenty of wiggle room, but again, that may change after it's confirmed and all that. I was just curious if anyone else had done this, taken a job that pays less but makes you happier. I'd rather be happy than rich. But both would also be nice.

[NowImDownInIt]

We have a house that we are keeping out of the Ch13 plan. We haven't filed yet, are doing that on November 22nd. Per the first round of numbers our attorney has quoted us, we'd have plenty of wiggle room, but again, that may change after it's confirmed and all that. I was just curious if anyone else had done this, taken a job that pays less but makes you happier. I'd rather be happy than rich. But both would also be nice.

There is no risk of getting rich in a chapter 13. LOL.

Okay. If you take a job making less money and have wiggle room, but no months to extend the plan then you may just lose the wiggle room. They aren't generally going to ask about the circumstances of the lesser paying job, but they also aren't going to decrease your plan base once confirmed.. At least in my experience. I took a HUGE pay-cut (involuntarily) 4 months into my plan and when I finally modified @ 6 months later (after having my daughter) I was still paying 100% to unsecured but they extended my plan from 36 months to 54 months to get the payments down.

There is no law against quitting/changing jobs, regardless of changing incomes. It's just a matter of the wisdom of the decision.

I would say that if you have no equity in your house and qualify for a 7 with the decreased income, that would be the time to convert.