Going independent while in a Ch 13?

[tomorrowman]

I am about 18 months into my ch 13. It's a 100% repayment.

I have my living expenses down to a minimum. I am seriously contemplating leaving a really unpleasant job and striking out on my own as a consultant. I plan to be able to keep making my Ch 13 payments.

If I do not require any new debt in order to get started... do I need to clear this idea with my trustee at all? If something goes wrong and I have to adjust my payments, does the Trustee care about the reason why? Or do they just look at income over some recent period of time?

Anyone else have any experience starting a business while in a Chapter 13?

Any tips, gotchas, or ideas would be greatly appreciated.

[lrprn]

I am about 18 months into my ch 13. It's a 100% repayment.

How many months is your plan going to last?

... do I need to clear this idea with my trustee at all?

You don't clear this with your trustee. You talk to your lawyer about it *before* you do it so you understand the ramifications of what happens if despite your plans, you end up not being able to make your payments on time. Your lawyer then informs your trustee about your change of employment *after* it's a done deal.

If something goes wrong and I have to adjust my payments, does the Trustee care about the reason why? Or do they just look at income over some recent period of time?

The only thing your trustee cares about is if you are making your payments on time or not. If you aren't and your lawyer doesn't submit a modified plan in a timely fashion (which often costs extra, btw), then your trustee will ask the court to dismiss your Ch 13.

Never forget....your trustee is there to represent the interests of your *creditors*. Your trustee is not there for you. Your lawyer is your personal best support in this situation.

Anyone else have any experience starting a business while in a Chapter 13?

Yes, there are forum members who have tried it. Most of them dont make it because they can't secure financing capital. Since you want to be a consultant, you should consider putting together a solid business plan in writing first, then test your market to see how much need there really is for your services. Do this *before* leaving your current job.

[Pandora]

Consultant.... that means you would have to have a client base already going, independent of your current employers', however another thing to check for is if your current employment has a non-compete clause; many in your field do so as not to take current clients away from them. Before quitting and trying it on your own, make sure you have enough clientele to support your living expenses and Ch. 13 payment, as it is currently.

Perhaps (if no compete clause is present among other things..) you can moonlight on the side but stay employed where you are, just until you feel out how things could go ??