New Job Offer

[minan]

Alright, so I got a new job offer which I didn't think would happen so fast. The income increase is about 9 - 10% above what I based my 13 plan on. My 341 was rescheduled to January 2011. Atty states that as long as the increase doesn't go above 10% - 15% above what my 13 is based on, the trustee is likely to leave it alone.

My current plan payment plus mortgage only leaves me with 400/monthly to pay for basic living expenses. I would dig into my savings each month to cover the total monthly basic living expenses total of $1000. This number is after cutting out all luxury things, such as HBO, reduced cell phone bill, reduced cable bill, got rid of pet insurance, reduce monthly food bill, etc..I've cut back on everything..so I could stretch my savings out over 5 years to make it through the plan and wouldn't need to get a second job.

With the new job, my take home only increases by about 300-400/monthly for a total of 700-800/monthly to put towards the $1000/monthly total. This would be a godsend as I wouldn't have to dig as deep into my savings and leave the savings to deal with any unexpected expenses over the 5 years.

Anyone have any experience with this? What about anyone in So California?

[newbie2]

I'm not sure if at your 341 you'll be asked for recent paystubs, but your attorney seems to know what is the norm for your district (pay increases and such). However I do question why you only have $400 each month for basic living expenses. One big replacement item (auto, etc) could shrink your savings to darn near nothing and then you wouldn't have that cushion anymore. That little to live on over 5 years just doesn't sound feasible, even with the new job.

[momofthree]

Based on what you've written here, if the trustee objects to your increase in income (wanting to increase your plan payment), you should easily be able to submit a modified schedule J to show that you need that money for basic living expenses. I will be very surprised if you end up confirmed with so little to live on. It's infeasible. With the higher income, you're much more likely to get your case confirmed.

[minan]

Contacted lawyer with this question and she said usually over 15% increase concerns the trustee. With so many cases, the atty stated that they are having harder time to scrutinize in extreme detail each and every case. As there seems to be no end in sight in the number of cases being filed, I'm not going to worry about this until the time comes, if it does. Only tax returns are needed each year for this trustee.

[minan]

I'm not sure if at your 341 you'll be asked for recent paystubs, but your attorney seems to know what is the norm for your district (pay increases and such). However I do question why you only have $400 each month for basic living expenses. One big replacement item (auto, etc) could shrink your savings to darn near nothing and then you wouldn't have that cushion anymore. That little to live on over 5 years just doesn't sound feasible, even with the new job.

I wasn't asked for any docs at the 341. I swore in and the trustee asked me questions, however he rescheduled when he realized that he hadn't seen my amended plan. Unfortunately, 13 was the only option as my biggest debt is back taxes. I filed to get protection from the IRS. So I am willing to endure a larger payment and to dip into my savings each month to cover remaining expenses not covered by leftover money from my paychecks. I also plan to get a second job (staying until the 15% increase in income) after my plan gets confirmed (which I expect will be next spring/early summer.