variable income

[IamOld]

Hello everyone - it MAY look like I might need to do Ch 13 - HOWEVER - my income can be variable due to 2nd (3rd, 4th) etc jobs - HOWEVER - I do NOT know ahead of time what this will bring in - in other words, I could have a very "good" month one month, and nothing but regular job in another month....

Any thoughts on how this figures into Ch 13 budget going forward? In theory (and legally based on my contracts) I'm never GUARANTEED any future (PT) employment...

[andy158]

This is not gospel, but our personal experiences. Your payments will be based on a 6 month look back. i.e. average of income vs expenses from the past six months no matter how many jobs you worked. I had a flexible income the first year of our 13 and had no problems with the trustee. I worked three jobs. One full time the other two part time with 1099"s at the end of the year. I was able to reduce the 1099 income with expenses since I was an independant contractor. If there are no wild swings in your income from year to year there should be no problems. Most plans allow a 10% increase each year with no increase in plan payments. Increases over 10% will be at the trustees discretion. If on the other end your income decreases to the point where making the payments are making you starve, your attorny will have to petition to have your plan amended for the loss of income.

Any "good" months you have is a great opportunity to create your emergency fund. You will definately need it and use it for unsuspected bills. Never assume everything is going to go smooth.

[IamOld]

Thank you andy - in other words - to make sure I fully understand :-) - if I have a "super" month when IN a Ch 13, I don't have to run to trustee EACH MONTH I make more (or less)??

[IamOld]

ALso Andy, what did you have to bring to your 341 hearing? How many months bank statements, etc?

[andy158]

ALso Andy, what did you have to bring to your 341 hearing? How many months bank statements, etc?

We gave everything to our attorney from the last year prior to filing (pay stubs, bank statments, previous year tax returns and any other forms of income such as the sale of any significant personal property). The only thing we brought to our 341 was our social security cards and two other forms of id. The attorney took care of all the other requirements. We were asked some basic questions by the trustee's assistant, signed the formal petition and that was it. Took all of about 15 minutes.

No you don't have to contact your attorney or trustee each month with your income amounts.

I strongly recommend a bk attorney when filing a chapter 13. Any bumps in the road after filing are best handled by experienced people. Remember your fee keeps him working for you the entire length of your plan. Money well spent in my opinion.

[IamOld]

Thanks! We already have atty - trying to figure out 7 v 13 me v spouse, etc...!

Thanks so much!!!!

[jetsfan2010]

My ex was a former real estate agent, whose income obviously greatly varied from month to month. She had to file a ch 13 a little over a year ago, and when they did a look back 6 months, her average was more than she had seen come in the more recent months. She agreed with it, though the original payment proposed wasnt feasible. 3 months in, after struggling and falling behind, she had her attorney petition to get payments lowered, as her oldest months fell off. Payment eventually was cut by 30 percent.

[IamOld]

Thank you Jetsfan!!!

Do you - or anyone else - think there may be a bit of wiggle room re "special circumstances?" The reality is that in order for me to make what I made from the side jobs (when I had no main job) I'd have to work - literally regular job five days per week, plus four nights per week, and at least on Sat. - I can't do that any more - is that possible to state as a special circumstance - that look, there's no way that's going to be possible in the future???