Gettting raise after Chapter 13 filing?

[sobeit]

Last month I consulted with an attorney about a Chapter 7 bankruptcy. Because I am about 5% over the current state median income, it was a close call, but we were going to try for a 7 and go to a 13 if needed. I was just waiting for my tax refund so I could give him a partial payment and we could proceed with filing.

In the meantime, I've applied for some other jobs, which has resulted in some negotiations with my current employer. I have the potential now to make 20-25% more in the near future. Somewhat stupidly, when I got my tax refund, I caught up on my late credit card payments instead of paying my attorney. I then tried to negotiate with my creditors, but they didn't offer me anything more than a debt management program.

And a 20-25% raise is only going to take me so far. I am a single woman earning about 44K a year now, looking at the potential of 50-55K. I have 39K in unsecured debt, and a 1050K a month mortgage payment.

I'm not sure what to do now. I could scrape up some money in the next week to proceed with filing. Or is it better to wait and see if I get a raise before filing? Does anyone know how it works if you get a raise after filing?

THANKS!

[Lissy]

My understanding is that in a Chapter 7, a raise after filing wouldn't matter. In a 13, I would think you would want to file before you get a raise because if you wait until after, your trustee payment would most likely be higher. I hope someone with more experience/knowledge can chime in. I am filing Chapter 13 today and am expecting a possible raise next week. Though mine will be neglible, only around 2-3% if anything.

[SMinGA]

I believe changes in income while in a 13 need to be reported. Changes in expenses would be considered also - so your plan payment likely would change.

Good luck on getting the raise with the current company. If you ultimately take a different job however, consider whether or not the new job would have additional expenses. Like more in gas & vehicle maintenance if it a longer commute. And a 20-25% raise would mean more taxes, so your net pay may not increase as much.