Pay cut on net salary only...

[chp13]

Ok so I recently found out I would be taking a 5% pay cut on my net pay (after taxs), not on my gross pay. Thats what my union negotiated. Should work out to $350 give or take. I've been on my Chp 13 plan for a year now.

Do I need to report this? I dont think this cut will effect me much since I make overtime here and there.

If I report the cut, will the Trustee need to review my last 6 months income, just like I did when I got confirmed? If thats the case then I would rather not have my current payment adjusted because it could actually go up.

What should I do?

[andy158]

If you can make up the difference in OT then I wouldn't report it. I suspect you will get a future raise being in a union. Wouldn't report that either. A 10% increase in your overall yearly wages warrents reporting to your lawyer.

[Pandora]

I've never heard of having a cut in pay based off of your net - that seems very odd to me - but then again I'm not familiar with the way unions work either. Seems that would be a direct violation of labor law IMO, but again, unions are their own thing so... Is there any way to have them merely cut your hourly wage by the amount needed vs the way they want to do it?

Anytime there is a change in your income status you should contact your attorney and discuss what, if anything, needs to be done. Overtime is nice, but if its not a constant then you shouldnt count on it.

[catleg]

All things being equal, I would avoid stirring up trouble. It all depends on how well you did in negotiating your original plan.

[goon]

if it is a reduction of pay that is that small of an amount than I wouldn't bother unless it was going to be a hardship.

And I will let him speak for himself on this but for those questioning the possibility of net pay going down but gross staying the same there are a number of ways that this could legitimately happen, first that comes to mind would be an increase in Insurance (or some other pre-tax) costs.

[chp13]

All things being equal, I would avoid stirring up trouble. It all depends on how well you did in negotiating your original plan.

Basically thats what my attorney said. Im just going to let it be unless all overtime is cut then well go back and try to revise the plan with a smaller payment