Sporatic OT ? when filing Chap 13

[LEINSTRIPPIN]

My husband I, are getting all of our paperwork together to file our chapter 13. We have a great atty that we are confident in. And I am sure he will be able answer us. However, I thought I would get some folks insight from the forum. We are lein stripping 2 mortgages worth $90K. My question for any one that has been in this postion -is my husband has very sporatic OT and I am wondering will they use this for determining our payment. The OT is not guareented and he can get a letter stating that. It does make a big difference in the disposible income when we average the last 6 months. About $600 a month.

Thanks!

[Limitman]

That happend to me when I met with my attorney for the first time. I worked alot of ot but I knew it wouldn't last. I worked out for me as by the time I filed the OT stopped and I was actually only working 32 hours a week which helped lower my payment. My advice would be to tell him not to work the OT and wait a few months for your income to drop. It is my understanding and I am no lawyer but 6 months look back is the law and it doesn't matter in the eyes of the law if it's sporatic OT or not. Of course this all depends on how your trustee is, mine was really fair and he understood.

[walkthaplank]

My work is very seasonal when it comes to OT. There are times in the year where I work 20 hours OT a week and other times of the year where I work 0 hours per week. Like your situation there is no guarantee of OT even in our busy times, there was even a year where I had very little OT which helped bring me into a CH13. With my work it is easy to predict when the OT is, so we planned our filing after 6 months of very little OT. They took that 6 month average and based my payment on that.

If you can't do that, your attorney can argue that OT is very sporadic and unpredictable and try to work out a payment based on averaging over the course of a whole year. Your lawyer will have to go over options with you.

[LEINSTRIPPIN]

My work is very seasonal when it comes to OT. There are times in the year where I work 20 hours OT a week and other times of the year where I work 0 hours per week. Like your situation there is no guarantee of OT even in our busy times, there was even a year where I had very little OT which helped bring me into a CH13. With my work it is easy to predict when the OT is, so we planned our filing after 6 months of very little OT. They took that 6 month average and based my payment on that.

If you can't do that, your attorney can argue that OT is very sporadic and unpredictable and try to work out a payment based on averaging over the course of a whole year. Your lawyer will have to go over options with you.

It is going to be tricky for us. With his OT there is no ryme or reason. So we could not wait for a certain time to file. They just told him last week that he has to work 20hrs a week OT until further notice. I will not complain about the money... however, it is sure going to be hard to calculate!

[forgotten]

It is going to be tricky for us. With his OT there is no ryme or reason. So we could not wait for a certain time to file. They just told him last week that he has to work 20hrs a week OT until further notice. I will not complain about the money... however, it is sure going to be hard to calculate!

You are probably going to have to use average OT over the last 6 months. Basically, you are going to have to try and maintain your level OT and mail the money to the trustee for all your hard work.

[LEINSTRIPPIN]

You are probably going to have to use average OT over the last 6 months. Basically, you are going to have to try and maintain your level OT and mail the money to the trustee for all your hard work.

I hope not. Because sometimes he can go months without OT and then we would not be able to afford the payment. Has anyone had the trustee payment based off the base income? That is what I am going to propose to our atty. I can get a letter from his company stating that the OT is not guaranteed. I guess we will see.....

[forgotten]

I hope not. Because sometimes he can go months without OT and then we would not be able to afford the payment. Has anyone had the trustee payment based off the base income? That is what I am going to propose to our atty. I can get a letter from his company stating that the OT is not guaranteed. I guess we will see.....

Can't hurt to try, but I wouldn't hold my breath. You are even saying 20 hours a week OT until further notice, that is about doubling your pay, I wouldn't expect the trutsee to allow you to just ignore all that income in calculating your payment.

I can get a bonus each quarter based on company performance. Sometimes I get it, sometimes I don't. It is variable and not guarenteed. I still had to use the average of my last 2 bonuses to add $300/mo to the plan.

[BKchapter13]

nope, unless the ot is all the time, I remember a bank that allowed a home loan to go thru based on ot, well once the ot is not there and this can happen more often in these days, well, its not going to be a solid weekly income.. the trustee doesnt include ot.. it would be odd if they did because first off you have a budget and they want to know whenever your budget changes, that means money coming in or money going out, if its sporadic it cant work in the plan. I mean my hubby gets overtime once in a while, I dont think we need to keep running to the trustee telling her our budget changed because a few xamounts of bucks made. Save that extra money you make in savings for days you will need it as all life lines will not be there in the coming months. So I dont think they base ot on your budget. good luck

[LEINSTRIPPIN]

nope, unless the ot is all the time, I remember a bank that allowed a home loan to go thru based on ot, well once the ot is not there and this can happen more often in these days, well, its not going to be a solid weekly income.. the trustee doesnt include ot.. it would be odd if they did because first off you have a budget and they want to know whenever your budget changes, that means money coming in or money going out, if its sporadic it cant work in the plan. I mean my hubby gets overtime once in a while, I dont think we need to keep running to the trustee telling her our budget changed because a few xamounts of bucks made. Save that extra money you make in savings for days you will need it as all life lines will not be there in the coming months. So I dont think they base ot on your budget. good luck

I sure hope you are right!

[forgotten]

nope, unless the ot is all the time

I missed the part of the code that said "average monthly income, excluding hours over 40 that you may not always get in the future".

[LEINSTRIPPIN]

I missed the part of the code that said "average monthly income, excluding hours over 40 that you may not always get in the future".

There is something in the chapter bk 13 code that states this?

[forgotten]

There is something in the chapter bk 13 code that states this?

Sorry, that was sarcasm. The code pretty much stops at "average monthly income".

[LEINSTRIPPIN]

Sorry, that was sarcasm. The code pretty much stops at "average monthly income".

Man... I had my hopes up for a minute! lol

[newbie2]

nope, unless the ot is all the time, I remember a bank that allowed a home loan to go thru based on ot, well once the ot is not there and this can happen more often in these days, well, its not going to be a solid weekly income.. the trustee doesnt include ot.. it would be odd if they did because first off you have a budget and they want to know whenever your budget changes, that means money coming in or money going out, if its sporadic it cant work in the plan. I mean my hubby gets overtime once in a while, I dont think we need to keep running to the trustee telling her our budget changed because a few xamounts of bucks made. Save that extra money you make in savings for days you will need it as all life lines will not be there in the coming months. So I dont think they base ot on your budget. good luck

Please be very careful about giving advice that may not be true in all districts, (or at the very least state where you district is).

Overtime, bonuses, etc are included as income during the 6 month look back for many districts. It doesn't matter whether it is sporadic or not.

[LEINSTRIPPIN]

You are right- I just went to the us court website. And it states that over time must be included. So I guess we are going to drop back twenty and punt!