Has anyone ever gotten a 2nd job while in their 13?

[rjd78]

I ask because my plan was based on my full-time salary about 2.5 years ago. Last year, I took on some freelance work that essentially doubled my income (note: not my salary, but my income).

At the time, I was terrified that I'd basically be working double-time only to be signing everything extra over to the trustee. However, my attorney assured me that (and I quote), he's, "never heard of a situation where someone had to pay more because they decided to start moonlighting."

At any rate, I had to fill out a new Schedule I and J last December to account for my (projected) income for the year. True to form, I never heard anything from the trustee, so I assume(d) everything was good.

Fast-forward to today.

I have been pre-approved for a mortgage, and my attorney said that he doesn't foresee the trustee not approving me to get a house. However, I'm somewhat concerned that the reason the trustee didn't require me to pay more money when he saw the increase in income was because it was only projected, and unverifiable, on a contract basis. And once he see's my tax returns, that what I did make was substantially more, that he'll come asking for more.

That would screw everything up for a few reasons:

(1) Because I've worked really hard over the last year to save a lot of money for this house, and put a lot away for the future

(2) I wouldn't be able to afford a house if I have to pay my additional income over to the trustee

(3) There would be no point in taking on the additional job only to hand it over

Again, in December, my attorney told me that he didn't see the trustee coming for more money. Maybe I'm just being paranoid, but like I said, I've worked hard at this 2nd job to save what I have. And they're going to re-sign me again for the next calendar year, so I will be having (basically) the same income again next year, and hopefully for many years after that.

If anyone has any advice, or experience in this, I'd appreciate it all.

[daytona]

I don't have any experience, but you are asking for trouble in my opinion by officially letting the trustee know you are making more money, it sounds like a lot more. The trustee can verify by looking at new tax returns, etc. What is your projected payback %? Your attorney should know best, and every ttee is different...but I would be very leery...

[rjd78]

Well, I'm required to send in any additional increase in income to the trustee. So, I was obligated to do so. Plus, he was gonna find out anyway at the end of the year. And rather than risk the case being dismissed, I wanted to be completely honest.

My assumption is that if he wanted more money, he would have asked for it when I filled out my amended Schedule I and J; seeing that I was going to be earning more money.

I guess I just have to go off the opinion of my attorney; that it'll all be okay.

Thanks for the reply. I appreciate it.

[becky20]

You don't, as a rule, have to send in your tax returns every year? I would love to try to get a mortgage at some point before we're discharged but my attorney told me that the big hurdle isn't getting trustee approval, it's getting approved by a lender in this market... So I'd be curious to hear more details about your credit situation. I also have a large chunk of money saved that we got for an accident settlement (atty told me since it happened after confirmation we weren't required to notify trustee) but I don't really want to invite questions as to why we have this money either... So we may just wait til discharge...

[daytona]

Well you just pointed out a difference in districts / ttee's. In some, the ttee's could care less about anything in the future once the plan is put into place. Others want every notification and will go after every penny they can for unsecured's. Only an experienced BK atty you trust, that knows how particular ttee's operate can give you competent specific advice.

[rjd78]

Becky, you can get an FHA loan while in a Chapter 13. You only have to show that you've been on time with your payments for a year, carry a middle credit score of 620, and have the income to prequalify.

My mid score is 625 right now. I'd recommend going on myfico.com and obtaining your Transunion and Equifax scores. That's what lenders base their decisions off of.

My scores were low about six months ago, but not nearly as low as they were when I filed 2.5 years ago. I needed to get my scores up to 620 so I went with a repair service called Lexington Law. They were able to dispute a bunch of stuff on my report which bumped up my score.

But to answer your question, you can get an FHA loan while in a 13. Just contact banks to find one that handles them.