Starting New Business While in a 13

[topekajack]

Just curious. If one were to come across an opportunity to start a new business during a chapter 13 plan what happens? Lets say this individuals income doubles. Does all of the extra cash earned go to the trustee for distribution? If so, why start a new business? Or, why take on a higher paying job?

[BNKRPTinNC]

Good point however........

Your unsecured are entitled to a full payback if you are not already at a 100% so there really is no motivation, IMHO, to make more money unless it is considerable to the point that you can pay back 100% and have extra.

[BKman]

What I have read, chapter 13's are set up to KEEP you at the same income level until you are discharged. If you make more they want more if you make less you ask to pay less or convert to a 7.

[topekajack]

I don't quite understand this scenario. So, for 3-5 years an individual has no incentive to work harder, advance in his/her company, use what little savings they have to start a small business, get ahead in their career. Why would the bk code be designed to do this to an individual? So, a true fresh start doesn't begin until after the 3-5 term expires? Why would anyone want to be held hostage by the government like this? I'm all for paying back as much debt as I possibly can; however, at the expense of my livelihood? Career? Marital relationship? And so on...

[BKman]

That's why I say if you have to go chapter 13 then fine, get it started. If at a later time things change and you can convert to a 7, do it and be done with it. You may have to give up some things ie..car, stocks, money. In the long run you save in the end and can re-build what you lost.

[BNKRPTinNC]

I am going to reiterate my previous post by stating that there is no real motivation to make more money in a 13 but does money always have to be the deciding factor in what one wants to achieve in life? If you want to advance your career then do so. Pay what's due to those that you owe. Want to start a business then go for it, my wife has. It is a source of income and was included in the plan. Her business is growing and the extra money that could be taken as income is put back into the business to help make it grow rather than her pocketbook. Look at it as a 3-5 year plan not as a sentence that must be served. Sure you are limited for that time period but consider the alternative. The filing of a 13 or 7 has given all of us an avenue to get on with our lives without being harangued by creditors until our dying day.

OK, I'm off the soap box.