Temporary change in income

[km2654]

I am 11 months into a 3 year plan. I lost my job in January. I have been receiving severance payments since then. I have 6 months of the payments left. I have found a new job making 60% less than I was. So for the next 6 months my income is higher than when I filed, but after that it will be much lower. I am also going to owe taxes because of a 401k loan default due to the job loss.

I am looking for a smaller (cheaper) place to live and will need the extra money to move. If I don't move I won't be able to pay my household bills in 6 months. My payment to the trustee is only $100 a month. So if I find a cheaper a place I should be able to continue to pay him too. The only bills being paid off in the BK are my car and my attorney so I don't think I can convert to a 7.

Will they redo my plan for 6 months? Will I have to do all the paperwork again..pulling 6 months worth bank statements etc? And then do it again when my severance ends?

If I don't report it would they even know I had more for a while? Would I have to pay money back if they found out? How would they find out? I don't want to cheat anyone, but if my payment goes up for 6 months I won't have the money to move. If I can't move I won't be able to pay the trustee or my other bills.

[keepinitreal]

Make sure you have extra taxes deducted from your paycheck on your new job, at least until the end of December. This will help you not owe so much on April 15, now that you'll have to pay the 401K withdrawal taxes and penalty.

I'd suggest you have a face-to-face meeting with your attorney to determine if you need to re-submit any paperwork now. Good luck!

[momofthree]

If, at the end of the year, your overall income is going to be the same or less on your taxes as it was when you filed, then it shouldn't even be considered an increase in income. Your income is just fluctuating at the moment, and by year end, it sounds like it will have balanced out--or even decreased. Ask your attorney about it, but I doubt you will even need to tell the trustee because overall you aren't seeing an increase in your annual salary.