Questions about confirmation and then increase in income

[Billssuck]

Hi all!

Just when you think things will settle down, I get a "good" curve ball thrown at me. I'm not sure how this will affect us so I wanted to get some advice on it.

I was told today that in January a fellow at work is gonna retire and I'm next in line for the position. This promotion would amount to $2,000 to $2,500 more per month; I've been waiting on this for 6 years and I didn't think anyone was gonna retire until 2-3 years. Anyway here is my info:

Filed CH 13 on 5/21/09. We were just barely below the median by $800/year and we had a negative DMI. For three reasons I won't go into now, we filed ch13 instead of ch7. We had our 341 on 6/17/09 and I just found out yesterday that we were confirmed on 7/14/09. During our paperwork process, we only had $4,500 of non-exempt assets and thus we have a 3 year payment of $125. On the 13 Data Center, a column on it says 100% to unsecured or the base amount (which is the $4,500 non-exempt assets). My first question is will I have to pay more towards that 100 % of unsecured by making a higher income now or will I just have to pay the base amount? Or will they start from scratch with us and redo all of the paperwork to come up with a new plan?

Also, in January, I will be paid an hourly wage for 3 months during a probationary period. After successful completion of this period, the position will be looked at to downsize if needed for a new employee and I will be hired at a contracted price. I do not know what that will be yet and I won't know until about March or April of next year. Will the trustee want to wait until then to see what my true salary will be before coming up with a different plan?

Also, during all of this time, I will have paid 11 months into my plan. If I have to go to a 5 year plan, will the 11 months be deducted? I know its the law that a ch13 can't go above 60 months.

If anyone has any advice for someone who has to modify their plan due to an increase in income, please let me know. I truly feel very blessed to have this problem right now with the state of the ecomony

[13inIN]

Your obligation is the report the change thru your attorney when it occurs.

I would assume that the trustee will see this change of income as cause for your plan to need to be modified due to the large increase.

The base amount really doesn't mean anything anymore as the code simply requires you to pay all available disposable income to the plan for up to 60 months.

What I am wondering at the moment is whether or not the length of your plan will have to change as well. Just remember whatever occurs.... it is an opportunity for the trustee to come after more income.... but it is also an opportunity to adjust schedule J accordingly too as you may incur higher expenses.

My advice is that the trustee not hear a peep though until you have a new fat paycheck in your pocket.

[Billssuck]

Thanks. I agree, I'm not gonna say anything until the money comes in just in case the job thing falls through.

Definitely Schedule J will be adjusted as I will have to pay for 6 days of child care per week and we really did cut alot of expenses short to begin with to qualify for the ch13 instead of ch7.

I was also wondering if I can try to get approval for a newer car while we're modifying our plan. Our cars all have over 130,000 miles on them and I don't know how much longer they'll last....especially if we have to pay for 5 years instead of 3. No way can they last that long... Additionally, I was hoping to put a little of the money into the Thrift Savings Plan that will be offered once I'm a full-time employee. How is this topic usually viewed? Currently, we have no retirement savings although I am receiving military pension. I sure hope that can be approved too...

Thanks for your quick response.

[Flamingo]

Hi all!
I was told today that in January a fellow at work is gonna retire and I'm next in line for the position. This promotion would amount to $2,000 to $2,500 more per month; I've been waiting on this for 6 years and I didn't think anyone was gonna retire until 2-3 years.

You cannot base a Chapter 13 Plan already filed on events that have not yet occurred or may not occur. If your circumstances change after you filed the Petition (i.e., increase or decrease in income), the original circumstances change and your attorney needs to be notified to see what, if anything, needs to be done. If the above scenario does, in fact, take place, you will be obligated at that time to advise your attorney of the increase and provide a copy of your new paystub and employment letter/contract since this sounds to be a higher level position in which there might be stock involved or other perks.

[Billssuck]

This is a pretty much a sure deal; I was told in private by my Postmaster (I work for USPS). He wanted to make sure that I was ready for it, made plans for it, and to not go looking elsewhere for a job as this is a great opportunity for me. Like you suggested, I will wait until I get a current paystub to go off of even though that may not happen till April/May of next year. If I do it any sooner than that, then it would only be a speculated amount of income. Thanks for the reply.