Increase in income -- is it worth it?

[ch3stpa1n]

Hi All - I am into year 3 of my chapter 13, and my wife and I are having a difference of opinion. She works part time. This income was figured into our plan payment. I have repeatedly suggested she go out and get a better job where she can increase her income to a point where we can put it away in savings so that we can (hopefully) pay off our plan early. She thinks that this is not the right solution. What is the general consensus?

[NoTomatoCan]

Hi All - I am into year 3 of my chapter 13, and my wife and I are having a difference of opinion. She works part time. This income was figured into our plan payment. I have repeatedly suggested she go out and get a better job where she can increase her income to a point where we can put it away in savings so that we can (hopefully) pay off our plan early. She thinks that this is not the right solution. What is the general consensus?

Are you paying back 100% to your creditors?

For the most part, following the 2005 change in bankruptcy laws, there is no early pay off unless you are paying back 100% of the debt for creditors who filed claims.

So that answer depends on your particular situation.

[ch3stpa1n]

Thanks for the reply. It is my desire to pay back 100% of the debt. So does that change things? I made a mistake by filing bankruptcy and just want to get out of it.

[researchnerd]

You are at least halfway through your Ch13 plan, which is a pretty good accomplishment. Can you tell us a bit more about how it was a mistake for you and why you want to get out of it early? Has the plan payment been a problem, or are there other things going on?

I don't know what kind of work your wife does, but going out and getting a better job these days may be easier said than done. If she does manage to find a job, and her income increases significantly, you may need to tell your Trustee, who will likely increase your payments -- unless you're already at 100% payback.

[ch3stpa1n]

Thanks for the response. For me (and not to sound too self-righteous), I just feel compelled to pay 100%. The plan payment has not been a problem, and I am not compelled by the plan to pay 100%. I guess I just feel like I need to. Am I stupid?

[forgotten]

Thanks for the response. For me (and not to sound too self-righteous), I just feel compelled to pay 100%. The plan payment has not been a problem, and I am not compelled by the plan to pay 100%. I guess I just feel like I need to. Am I stupid?

There is nothing wrong with wanting to pay 100%. Pressuring a spouse to work harder so you can do so when you don't need to could be a sore matter in your relationship however.

Do you think citibank cares if you pay back the extra $5k (or whatever)? Actually, in the case of a lot of creditors (citibank for one) they have already sold off your debt, anything you pay is going to the third party that paid way less for the debt than you are even scheduled to pay back.

In the end you need to do what is best for you and your family. The creditors don't care about you, try not to care so much about them.

[Flamingo]

Unless you are in a 100% payback plan, you will not be able to pay off your plan early. What you need to do is ask your Chapter 13 attorney if your wife should get a better job and an increase in income, how would that affect your particular plan and what would need to be done (i.e., plan modification due to increase in income, etc.).

[Pandora]

Thanks for the response. For me (and not to sound too self-righteous), I just feel compelled to pay 100%. The plan payment has not been a problem, and I am not compelled by the plan to pay 100%. I guess I just feel like I need to. Am I stupid?

No, you're not stupid - but you do need to get past the guilt that you're keeping with you for filing BK. (gentle hugs).

Take the extra money you want to pay your creditors above your plan - and use it for savings for the future. You need to look at it differently - what if something major happens to you/your family and you need the money? Obviously you had to file BK for a reason, so use the extra money (if thats what happens and your trustee allows you to keep it) for the future.