Job loss on the horizon.

[lolly78]

We have exactly 12 payments remaining and now my job is moving across the country. My husband is not interested in moving so if I can't find another position locally within the company, I'll be unemployed by September. I possibly have an opportunity now to take another position at a $9000 a year pay cut. I

'm really not interested in doing that when I can continue at my current salary until September and possibly find another position later. If I am not able to find another position, I will receive a severance package then collect unemployment for 6 months which should carry us until the final chapter 13 payment is due.

So many great things happened for us during this last 4 years, I guess it was inevitable that something not so great would happen! I would see if I could get the payment adjusted but I just want to stay under the radar and finish this thing off. We did a few things we probably shouldn't have during the BK. I

had a baby and we needed our baby sitter (mom) close by so we pulled funds from our 401k and purchased a small house about 10 minutes away from us for her to live in. She pays us less then she was paying for rent and we cover the gas and water bill. I ended up owing the IRS due to the withdrawal and got on a payment plan for that. I'm sure the trustee would frown at these things so that's why I'm not interested in requesting a modification.

Hopefully everything will work itself out.

[AngelinaCat]

Hi Jolly:

I broke your post (which was well done) up a little bit more to make it easier for others to read. First, I would say do NOT touch the 401k, but you did and learned the consequences.

In your situation, I think I would try to stick with your plan as it is. If it becomes too much of a burden in a couple of months, I would ask for a modification. But you are SOoooo close... Try to make it work and let us know how it goes... )

[dmc-2008]

[Drazil65]

I too would be much more afraid the trustee would find out about the house you bought (might have been better to pay her rent at the time especially since you obviously have extra money each month and that house is public record) etc as well, so with this much advance notice on the job loss you have time to plan. You got into the 13 to straighten things out so the choices you have made seem to negate many of the fresh start opportunities so ride out the job until the end, collect your severance and call it a day. At the time if you have to have to take a lower paying position you will be very close to end of payment plan so you will deal with it.

[lolly78]

We paid cash for the house from the 401K funds, so technically we didn't incur any new debt. Well I guess that could be up for debate since we are responsible for the property taxes? Daycare would have cost us about $1200 a month for the new baby and with the rent we collect from Mom minus the expenses for the house we end up spending about $300 a month which I now deduct on our taxes. Doing this allowed us to avoid having to go to the trustee for a modification as well.

I definitely think its a good long term investment though. This year I ended up with a $5000 refund. Unfortunately since we owed for 2013 they kept the whole thing, but once we pay off the IRS and get discharged I think we'll be sitting pretty.

Our chapter 13 payment goes up next month by $500 to almost $2000 since I paid off my car. I just need to get through this last year. $24,000 in one year and we're done. After that it won't matter how much I make without this huge payment!