Large Salary Increase and Relocation

[coopersmydog]

Lots of questions here... I'm about to take a job that is going to pay ~50% more than my current position. My income will go from 80k to 120k. I'm also going to be relocating to a new state.

I currently own my home, I will have to rent after I move.

I've been in my plan about 10 months, and I just received a letter today stating that it's a 14.55% plan.

2 main questions. How much of this salary increase will go towards my plan?

Will the amount I have to pay creditors increase?

Any issues with moving during a ch13?

[Flamingo]

When you take the job and have your new income information in hand (i.e., employment letter indicating salary), contact your attorney immediately as your Plan will have to be modified. Your attorney can do nothing until you actually take the job. You can't modify a plan on speculation.

It would be difficult to determine what could come out of this since there are many things involved including the move (I assume it will be paid for by your tentative new employer), your house situation, etc. Your trustee will be interested in any and all documentation resulting from both. You can give your attorney a "heads-up" about this but until the salary increase actually takes place on your hiring date, nothing can be done as there are no actual figures yet to work with.

[coopersmydog]

will the amount I have to pay creditors increase? Or once the amount is determined is that part of the bankruptcy set?

[BNKRPTinNC]

Since you are not in a 100% payback I would surmise that your payments into the plan could be increased, provided your DMI has risen. As Flamingo stated there are factors involved that may or may not have an impact.

[isabella]

I am in the processes of relocating out of state for a new job and pay increase. Trying to rent has been a horrible experience. Be prepared to be flat out rejected just because you have an open Chap 13, regardless of income or any rental history. Many places will ask for a much larger security deposit. Look at smaller property management companies and private individuals. To date I have talked to or visited 26 different properties and have 3 that will deal with me that are in good areas and decent apartments. Good Luck.... :-)

[HHM]

will the amount I have to pay creditors increase? Or once the amount is determined is that part of the bankruptcy set?

If you are not in a 100% payback plan, then the amount paid to creditors will go up.

This feature was one of the big unfortunate drawbacks to the 2005 amendment to the BK code. Chapter 13's are based on disposable income, and disposable income only (setting aside the liquidation value part of chapter 13's for the moment), the amount paid to creditors is pliable. If your disposable income goes up, then your creditors get more; if your disposable income goes down, your creditors get less.

[sassiebaz]

Congrats on the new job, and pay raise....

[Carter]

does it still keep you in a five year plan or would the increase in payments pay off the plan early?

[coopersmydog]

Congrats on the new job, and pay raise....

I got an offer finally. Now have decide if it's worth it if all the extra money is just going to BK.

How are signing bonuses handled? Can I at least keep that?

Oh yeah, I still have to pass the background check which may or may not include credit report. Another sleepless 10 days.

And if all that goes well I still have to find someone to rent me a place.

Whoever said BK is an easy way out is silly. Making this a miserable process for me.

[isabella]

I would take the job, you will be in a better position after your BK and as my attorney put it, making more money means more expenses.

My background check went fine, I did have to write a letter explaining why I filed, then I was approved.

I have already commented on the apartment search, PM me and I will answer any more questions you might have.

My trustee does not take bonuses, profit sharing just my federal tax refunds if any. Check with your attorney.

Take the new job, you will be better off believe it or not when the BK is done.

I agree, this has not been the fresh new start that many people say it is.