Voluntary pay cut Chapter 13. Can I take one?

[chicagomike]

Voluntary pay cut Chapter 13. Can I take one?

I am currently in a chapter 13 bankruptcy. The place where I am working has has 4 rounds of layoffs in the last year and it is looking like there may be more to come. I have started to worry about my job. I have started looking for a new job but so far all of the jobs I have found pay a noticeable amount less. (Common in this economy from what I understand.) I have found one that I like but it of course pay much less than my current job. It is possible that my company may offer me a different lower paying position also.


So the question is:

Am I allowed to take a job that pays less or am I forced to stay at my current job until I am laid off, then start looking for a new job?

Thank you in advance.

Chicago Mike

[Flamingo]

Please check with your attorney on this one. Voluntarily reducing your income may raise eyebrows with the trustee because, of course, you would have less money to fund your plan and your plan is based on your income at the time of filing. You are still responsible for making that plan payment even if you lose your job. Anytime there are any financial changes to your situation or you perceive any financial changes, you need to contact your attorney directly.

[BuckeyeGuy13]

Ditto to the above. I was considering this late last year and contacted my attorney on the advice of this board. My attorney explained the process and set out the options. She explained that I would need at least 1 month of the "old" payment set aside since it would take about 30 days for any plan changes to be formalized and, until that time, we are responsible for the confirmed payment amount.

If there is uncertainty with your situation, call your attorney to discuss it. What I've found is that this board is useful for general information gathering, but with detailed, specific questions like this, it will require your attorney's answer 99% of the time. I walk away from my conversations with my attorney, not that they're frequent, feeling much better.

Good luck.

[chicagomike]

Thank you for the Info.