Bad timing

[newlife13]

I'm filing next week. Anticipated payment will be $181. Today, I was approached by a recruiter about a new position with virtually no commute and likely more money (though likely not 10% more). Also, my commuting expenses will go from $340/mo to zero. Obviously, I will not be confirmed before the interview process wraps up -- and I don't want to file at one income level if I *know* it's going to change immediately. That's probably fraud and grounds for dismissal. The bottom line is: if I dazzle them and am offered the position, it will totally screw up my filing. Gah.

So, the timing is not ideal. Gaining 3 hours in my day will be amazing, even if I have to pay more towards my debt. Obviously, I'll speak to my attorney about my options, but I am terrified that I will do something and not get confirmed.

Anyone have something like this happen to them? Income & expenses change between filing and confirmation?

[justbroke]

A Chapter 13 is what they call a "pending" bankruptcy (or a bankruptcy in "pendancy"). That's because you don't receive the discharge for 3-5 years. Because of this unique nature, we file a Plan of Reorganization (the Plan!) and we may even have different revision of the plans, known as amendments, before our plan is confirmed. Depending on where you live, your actual plan confirmation could take anywhere from days after confirmation to many months after confirmation. Prior to confirmation, an amendment is easy... you just file a new plan.

There is still a mechanism to fix a plan after confirmation and that's known as the plan modification process. Plan modification of a confirmed plan may or may not need a hearing, but it can take a few weeks.

This is not grounds for dismissal or fraud. This is simply "life" and Chapter 13s are flexible enough to deal with life's little tests. Just mention this to your attorney and I'm sure they'll explain the process as I have and may be able to just file a plan "amendment" if you get the job.

Crossing my fingers that you get the job!

[newlife13]

A Chapter 13 is what they call a "pending" bankruptcy (or a bankruptcy in "pendancy"). That's because you don't receive the discharge for 3-5 years. Because of this unique nature, we file a Plan of Reorganization (the Plan!) and we may even have different revision of the plans, known as amendments, before our plan is confirmed. Depending on where you live, your actual plan confirmation could take anywhere from days after confirmation to many months after confirmation. Prior to confirmation, an amendment is easy... you just file a new plan.

There is still a mechanism to fix a plan after confirmation and that's known as the plan modification process. Plan modification of a confirmed plan may or may not need a hearing, but it can take a few weeks.

This is not grounds for dismissal or fraud. This is simply "life" and Chapter 13s are flexible enough to deal with life's little tests. Just mention this to your attorney and I'm sure they'll explain the process as I have and may be able to just file a plan "amendment" if you get the job.

Crossing my fingers that you get the job!

Thank you! It's still hard to get my head wrapped around the fact that, if I get a job that increases my income, I don't get to keep it. That's super depressing. It almost makes me not want to bother, you know?

[justbroke]

Please understand that the super-majority of Chapter 13 Standing Trustees usually don't care if you get a small raise. I can't define "small" but anecdotal evidence suggests that changes less than 10% (probably 1%-6%) won't cause a plan modification because the cost of living changes at 3% or so anyhow. It's just not worth it to have another hearing on plan modification for something "small".

If your income increases significantly over the plan duration (3-5 years) and it increased 10% each of those years, that could be enough, and probably would be enough, for there to be a Trustee motion to modify your plan. If you're in one of those lucky districts where the Trustee never asks for tax returns each year, you may be able to skate by even with 10% annual increases.

If you get a raise or start a new job (not just offered but start) notify your attorney and they should review where you are and determine whether they will do a self-initiated motion to modify confirmed plan to increase payments. As a matter of fact, you should contact your attorney immediately whenever you have any change in income/expense so that you are not punished by the Chapter 13 Plan.