Which would you prefer in a chapter 13?

[anonymuse]

Any chapter 13 would cause most of your disposable income to go back to repayment; however, which situation would you prefer?

Assume that all benefits, perks, vacation time, sick time, etc. are equal.

And WHY?

[jenrw74]

I voted to take the better-paying job. True, you would have to modify your plan and your trustee payments would go up. But in the end, after the whole process is over and you're discharged, you are going to be better off with the better pay. You'll have more money to put into savings afterwards, for emergencies, down payments, etc.

[SinkingFast]

I voted to take the better-paying job. True, you would have to modify your plan and your trustee payments would go up. But in the end, after the whole process is over and you're discharged, you are going to be better off with the better pay. You'll have more money to put into savings afterwards, for emergencies, down payments, etc.

Ditto's!

Just think about a $2K salary increase. Over 10 years, that's $20K PLUS the associated differences in increases. Take a significant increase like $10K,........ In 10 years, that's $100K plus the extra from pay increases.

If the company gives life insurance at 1x your salary,.......... $80K is $20K more than your dependents/heirs would get if you make $60K.

If your Trustee allows for 401K contributions,............ 5% of $70K is $3500/year saved. 5% of $35K is half as much. $1750/year. Not to mention the difference in Employer matches if you get that as well.

A bigger salary can pay of in many more ways than staying at a mediocre paying job.

[CindyLou]

at the end of the BK you are already $$ ahead in salary and then its ALL YOURS!!!!!!!!!!!!!!!!!

[aa06a47]

I voted for changing jobs to get the larger pay. There are many things that you must look at though when changing jobs. Higher pay generally relates to more responsibility, more stress, and many times, longer hours. You must always factor that into your own personal decision. THere are alot of questions that must be answered.....Is the job a stepping stone to a bigger job, is the new job secure.

5 years in a chapter 13 seems like a long time, but you must always consider LAB (Life after Bankruptcy).

[anonymuse]

I'm glad to see the vote this way since I've read some threads where people had the attitude that they didn't want the creditor to get their extra money. I totally agree with the majority here.

I'm not sure how I feel if the salary increase made the difference between a Chapter 7 and a Chapter 13. I can see arguments for both sides on that one.