Finding work during ch 13 plan...

[lalap123]

What if I'm not working at the commencement of my ch 13 plan (DH would essentially be footing the bill), then I get a job making $50K/year. How is this taken into account? Would they essentially take more for my creditors even if the claims didn't equal that in the beginning? Anyone have experience with this?

[justbroke]

I don't have direct experience, but here's the deal.

Did you two file a joint petition or did you file by yourself? Your State may impact this if it's a community property State.

If you're required to provide (annual) tax returns the Trustee will see the income and increase your plan payments. Not only by what you're making at the time, but retroactive to when you started making the money (basically catch up payments).


If you're not in a 100% plan, you may be in a 100% plan.

If you're saying that your unsecured creditors are less than $50K, then you'd end up in a 100% plan for sure (if not already in one). You would pay all your DMI (which is everything you're making at your $50K/year job, for the most part) into the plan.

So, if you're at $50K a year and $4K/month (approx), then you're be contributing the $4K less taxes (and maybe 401K) to the plan. Let's just say it's $3K/month. If your unsecured creditors are only $36K, then you'd be done in 36 months.

That may be a little confusing, but suffice it to say that you need to immediately report the change in income since you say "my" Chapter 13, and then you get a $50K/year job. Don't try to hide this from the Trustee.