Modifying a 100% Chapter 13...what would happen?

[sophieanne]

H..
I'm at the point of no return with my job and am seriously considering quitting. I'm paid very low, feel extremely underpaid and seriously overworked and that's not going to change...i'm working at a private university that is having it's financial problems right now due to the economy and lack of spending controls. I've tried to apply for other jobs in the university but keep getting turned down because I'm really needed where I am. Even though we have a handbook that says qualified internal candidates will be considered, no job has been filled in the last 2 years by anyone except external candidates, who come in, learn how bad it is to work where are and leave. I recently applied for a job with HR and told the manager I didn' want to apply if it wasn't felt I was qualified (which I knew I was). I submitted my resume and was told I was qualified..please apply. No internal candidate who applied was interviewed.

Anyhow, I'm at the end of my sanity rope. My husband and I are in a 100% plan. My husband makes over double what I make so if I quit we would still be over the median and would remain in a 5 year plan. My question would be, would we continue where we are now, or if our plan changed down from 100% payback would we go back to 5 more years??

And of course, nothing is straight forward, I was in a car accident in November (1 1/2 years after we filed). My lawyer is just starting to work with the other insurance company on a settlement. The other driver was at fault (documented by the police). Anyhow I understand settlements can be fast or take years. If our plan changes, I would assume the trustee can take the whole settlement amount??
I have no idea what the lawyer will be asking for (I'm on a need to know basis). My case is based on suffering whiplash and giving up a part time job I couldn't keep because of the pain I was in (found I couldn't work 7 days a week and recover)

I don't want to stay where I am just in case the settlement happens quickly. I don't have another job to go and it may take quite some time to find another one. Unfortunately my peace of mind is not worth the small amount I bring home.

Any thoughts on what I've written would be appreciated.

Happy Memorial Day.

[niko]

it all depends on your disposable monthly income. Calculate both of your income and the husband, deduct your expenses and see what you got. If you are on %100 payback plan and you got the settlement, you can pay it off your debt and walk free! do not drop out from the plan for the settlement, either way - that settlement can really help in your case. You can search jobs outside of that university - or keep that job as part time (if you have retirement invested there) and look for full time. Stick to the plan and at the end you will be rewarded and learn a lot from it. You will be the cash king and you will be much better shape financially.

Good luck!

[LadyInTheRed]

My question would be, would we continue where we are now, or if our plan changed down from 100% payback would we go back to 5 more years??

No. A Chap 13 plan is limited to 5 years. If your plan is modified to reduce the payment and the new payments does not result in 100% to unsecured creditors, the percentage will go down.

Talk to your BK attorney about quitting your job. I don't think it will be an issue because you can't be forced to work. But, don't do anything until you confirm that with your attorney.

[sophieanne]

Talk to your BK attorney about quitting your job. I don't think it will be an issue because you can't be forced to work. But, don't do anything until you confirm that with your attorney.[

Thanks for your response Lady. Our BK has been based on paying a vehicle (which was paid 4 months after starting the plan) and credit card debt. All that's left now is the credit card debt. I had someone tell me i may not be able to modify as quitting my job would not be acting in good faith. That threw me. I went into this plan because I wanted to do the right thing and ensure my creditors were paid, but I don't want to do it by being taken advantage of by my employer. Removing my income from the equation does not change the fact we will still be in a 5 year plan, it would just change the amount paid back to the creditors

[sheltielover]

it almost sounds like the job could be effecting your health. nothing is worth that. i had a similar horrible job and quit about 4 months before we filed last year. from my experience and what our attorney tells me- you should be able to do it - and the plan would just modify. good luck and do your due dilegence and i think you'll feel much better in the end by going this route.

[LadyInTheRed]

Even if quitting your job would bring your household income to below median, you would remain in a 5 year plan. The committment period is based on your income on the date of filing.