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Chapter 13 and Essential Worker Hazard Pay

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    Chapter 13 and Essential Worker Hazard Pay

    I am an essential employee that is still working 40 hours a week, and for that I am grateful.

    However, I'm losing sleep over a wrench that might be thrown into things in the form of extra pay. For 4 weeks, our employer paid us $1.50/hour extra as "appreciation pay" for working through these tough times. It was announced on Friday that we will be receiving $3/hour extra from now through mid-June because they had qualified for one of the recent small business loans.

    My stomach dropped and I was like, "NOooooooo!" Of course I want more pay, who doesn't, but now this will mess up my income and my payment will go up next year unless some sort of miracle happens with the trustee. My trustee has a limit of a set increase per year in pay before they seek a payment change. The raise I received in January will put me right below this limit as it is. My payback % is somewhere in the teens.

    I am just sick. My rational side just says it will all be okay and just put the extra money in a savings account so I can handle the increased payment next year. I think the reason I'm so worried is that I just don't want any more "court happenings/filings" until the end of this. I just want to pay, stay under the radar (I have nothing to be worried about, I am just a big worrier by nature), and get through this. My nerves can't take any more, even though everything was 100% smooth with no issues at all. Hopefully my job remains good, as it has been. My employer refused to believe there would be any sort of shutdown, and we had an argument about it.

    Anyone have any words of wisdom on this? Do you suppose the trustees will see this as an odd year and just leave things alone? Should I notify my attorney NOW about this increase, or wait until this all calms down? Or even just the end of the year?

    Also, just a vent, no word on the stimulus payment yet and what the decision is on keeping that or not. I feel like I'm just in limbo all around. Thank you for listening!

    #2
    Given your pay raise earlier this year, plus the extra money you earn between now and mid-June, will that equate to more than a 10% bump in your yearly income? If not, pretty good bet the Trustee could care less.
    Chapter 13 (not 100%):
    • Burned: AMEX, Chase, Citi, Wells Fargo, and South County Bank cum Bank of Southern California
    • Filed: 26-Feb-2015
    • MoC: 01-Mar-2015
    • 1st Payment (posted): 23-Mar-2015
    • 60th Payment (posted): 07-Feb-2020
    • Discharged: 04-Mar-2020
    • Closed: 23-Jun-2020

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      #3
      I think, if I did the math right, it would be 5 or 6% increase including both. Thank you for looking at it in that light.

      Well in a wonderful stroke of luck, I called the attorneys office again to ask and the attorney was available!

      He said, "Nah, keep it!" to the stimulus. I even asked, "Are you sure I won't be made to submit it?" to which he said again, "Nah, keep it!"

      And the hazard pay he said not to worry about it and just keep making my payments as normal - the trustee has way bigger things going on (or something along that line. I forget what the exact quote was beyond "the trustee has"). So that is good news! Phew! I can sleep tonight!

      Comment


        #4
        Over the course of my 60-Month Chapter 13 I had something like a 36% increase in pay increase; my Trustee never blinked twice. The only extra money I needed to pay was when I got a large tax return a few years back.
        Chapter 13 (not 100%):
        • Burned: AMEX, Chase, Citi, Wells Fargo, and South County Bank cum Bank of Southern California
        • Filed: 26-Feb-2015
        • MoC: 01-Mar-2015
        • 1st Payment (posted): 23-Mar-2015
        • 60th Payment (posted): 07-Feb-2020
        • Discharged: 04-Mar-2020
        • Closed: 23-Jun-2020

        Comment


          #5
          anitag1 - I was glad to read you called your attorney and that you got the response you did. I think it would be horrible if you were penalized for receiving hazard pay. Thank you for providing service through this difficult time.
          Filed Chapter 13 - 07/20/12
          Discharged 8/2/16

          Comment


            #6
            I am glad you talked to the attorney! My husband is getting hazard pay, which will be paid in a lump sum even though they said $2 hour and then upped it to $3 an hour. He's also getting gift cards (for the grocery store) which at least it's trackable as income!
            I am not an expert. I share my experiences in the Wonderful Wacky World of Chapter 13! Filed 3-30-18 Confirmed 7-11-18 Discharged 6-8-22

            Comment


              #7
              Originally posted by shipo View Post
              Over the course of my 60-Month Chapter 13 I had something like a 36% increase in pay increase; my Trustee never blinked twice. The only extra money I needed to pay was when I got a large tax return a few years back.
              Same here. My salary increased 31% over a period of 5 years, but I also had a baby which raised my expenses. My trustee didn't adjust anything.

              Comment

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