Is this good news or bad news?

[pcn]

The payment plan in a 13 is based on previous wages, or current? I ask because we are "scarily" close to filing, and my wife just got a call offering her some part time work. It doesn't pay much, but if she accepts how does that affect our filing? Would the payment calculation go up? I guess best case would be for her to start after we file, since the amount is relatively small, but would still help make sure we could make the payments more comfortably. I know any changes in income are to be reported, but this is close to minimum wage. It probably wouldn't make much different in the calculation, but sure would help with piece of mind making the plan work. Has anyone been through have a similar situation?

[spidge]

I am no expert but I would think you would have to report it.

If your plan is that tight consider revisiting the budget and get help with it. You would be surprised what you can include.

Try here, http://www.legalconsumer.com/

Or here,http://www.ca-bankruptcy-attorneys.c...alculator.html

Don't hesitate to show it here as the folks here are good with advice and many have had the experience to share.

[optimistic1]

I asked this question before, and never got an answer, so I researched it in my book, when you fill out Schedule I, it should be what you are currently making, not what you made within the last 6 months. The NOLO Book on how to file a Chapter 13 clearly references this. Its says, that the amount on Schedule I, will differ from what you have on on Form B22A, B, or C.

And depending upon your plan, and whether or not your district, looks and Schedule I and J to determine disposable income, or if they just use the B22A,B, or C form, will it make a difference.

An experienced attorney could tell you what the court system will use to determine your DMI.

[spidge]

it should be what you are currently making, not what you made within the last 6 months.

So if I have been working as much overtime as is possible I should stop now to show a normal week of wages? This would be good for me as I am tired of working an extra 15 hours per week of OT, and not getting anything out of it.

[pcn]

Current income is what I was afraid of. With the local economy as it is, I'd hate to make the calculations based on her starting a new job that may or may not be around a month later. It is waitressing, in a lower priced restaurant, so it could fluctuate greatly based on what the economy has in store. We have 2 medium sized companies locally that employ 75% or more (me included) of the residents - 3 layoffs in the last 1 1/2 months, and it's not looking good for the doors staying open too much longer.

[optimistic1]

So if I have been working as much overtime as is possible I should stop now to show a normal week of wages? This would be good for me as I am tired of working an extra 15 hours per week of OT, and not getting anything out of it.

I would, due to the fact, that after you are confirmed, the trustee probably doesnt even look at your tax returns, even though you must give them up every year.

They will most likely check your most recent paycheck stubs, to determine your "current" income, even if those same paystubs are used to calculate your 6 month look back for an annualized income. For current income, they will take the amount on your check, and then multiply it by how many times you get paid a year, either weekly, bi-weekly, twice a month, or monthly. And then they will divide the result by 12, which will give them a monthly figure. But every district and trustee will use their own way, but to me, that is the way that makes the most sense. The whole thing just makes me sick and gives me a headache.


Also, if you are working tons of overtime, this will reflect into your average 6 month income calculation, which will increase your DMI that you are required to pay into the plan.

I told my employer to offer all the overtime to the rest of the staff, I told them why, and they understood. I could get more OT, but, I dont want to go over the median and end up with a 60 month plan. I wouldnt mind doing a 60 if it wasnt such a pain in the a** to get a new car.

After I get confirmed ::crossing fingers and praying to GOD::, I will work all the O/T I can get, and hope they never increase my payment, which if they do, I will try to justify spending that increase on allowable expenses.

[MommyMc]

pcn- I'm a stay at home mom, but 2 years ago I started a direct sales business from the home.... you know, like Avon, Pampered Chef, etc,the in home party sales thing.... anyway, I did this to earn some extra income to help pay for our children's activities. ( It went great for me, I did it for over 2 years. I developed a "team" and on average I was making $1000 a month off my team. ) The money was never a "guarentee" because it depended upon my teams sales. When we filed for BK this past November my attorney kept asking me.. "are you sure you want to continue with this business?" Never thinking about it I always answered yes. Come to find out, after business expenses and taxes, all the money I make goes to the monthly payment. And with the payment being a set payment, if my team has an off month and I don't get what is expected my family suffers more. Guess what? With the economy being in the tank my business has tanked too, so I went from $1000 a month to this last month making only $79, but yet I'm to contribute over $500 to my share of the bk payment.
So from my experience, my opinion, if your wife takes a part time job now, it will count as your income and will go to your monthly payment. I would wait until after you file to work some minimal hours. According to our Trustee, we are to report the additional income once it hits $500 a month. Anything less than that we can keep. Your state/Trustee requirements will be different.
I'm not an expert, this is just what happened to me.

[pcn]

I am no expert but I would think you would have to report it.

If your plan is that tight consider revisiting the budget and get help with it. You would be surprised what you can include.

My impressions of the process so far is that the intent of the trustee is that the plan IS tight to begin with. All disposable income is to go to the plan. I'd rather not include a variable, or possible short term, income in the calculation of disposable income. I know there are ways to pad that calculation, but if the variable income above is included in the calculation, the padding becomes useless when that variable is removed. Hope that makes sense and explains it better.