After plan gets confirmed what happens if I change jobs and make alot less $$$ ? >>>

[psa10]

Question, I live in AZ and if you make over $42k a year you have to go on the CH 13 sixty month plan, question is this, if I quit my current job and get a new job paying under $42k would I be able to move into the thirty six month plan? What about my vehicle that is included in my current sixty month plan? I assume that if I went from 60 to 36 that my payments would actually go up since I owe on the car being paid within my plan? Am confused! May re locate at a lower paid job and just wondering what my options could be.... Thanks !

[despritfreya]

If you are already in the bk, reducing your income now will not change your commitment period since the commitment period is determined as of your filing date.

The problem I have with your post is that you appear to have a misconception. Just because you were over median income, did not mean you had to do the 13. It only meant you had to complete means testing. If you failed means testing then you would most likely have been required to file the 13. Did you fail the means test?

If your financial situation deteriorates enough whereby you cannot afford to stay in the 13 you may want to discuss with your attny moving to a Chapter 7 either by converting or letting the 13 get dismissed and refiling assuming you qualify for the 7. Depending upon who the vehicle lender is, you may be able to work it out so that the vehicle is not at risk during the gap.

Des.

[kornellred]

"if I QUIT my current job...."

That is a problematic statement. While the government has no authority to limit your personal choices, even the most liberal BK Court Judge would take you to task for pulling off a stunt like that. If you took a job that pays less than you currently earn, it would make sense that it would be more difficult to satisfy your financial obligations. I hope you don't think that you can pull this lower paying job switch off and the BK Court will just have to abide by your decisions. That's just wishful thinking.

This is somewhat akin to quitting your job so you can collect unemployment benefits. That does not happen very often.

Good luck to you, in any case.

[kornellred]

After re-reading what I posted above after the edit function disappeared - it seems that I came off a bit snarky. I did not mean to. But, the Court will ask you for a valid reason why you are petitioning for a modification of your Chapter 13 plan. A lower income is certainly a valid reason for a modification, but you will need to explain why you took a job for less income when you could have remained with your (present or former) employer. That could be the "sticking" point.

[psa10]

I assume the US Bankruptcy Court cannot tell me where I can or cannot work.

I am only in the planning stages of a possible relocation to a more relaxed and layed back state, one with fresh air and a much nicer climate and way of living. The only problem is that my current job I hold is extremely stressful where I am at and could possibly perform the same job in this new state however the pay is lower due to the cost of living.

I assume if my pay does go down under the Bankruptcy Courts chapter 13 guidelines that I would have a valid reason to file a possible amendment to my case! I am currently on a 60 month plan, due to my higher income however if my income goes down then I would assume that I could qualify for a 36 month plan.

This is my question here. I do have a vehicle tied into this bk so if I get a reduced payment timetable, from 60 to 36 months, I am not sure how this would affect my payments. Also I cannot go from a ch 13 to a ch 7 as I have filed a ch 7 within the past 8 years.....

[AngelinaCat]

I assume the US Bankruptcy Court cannot tell me where I can or cannot work.

This sounds arrogant to me. Probably it was not meant that way, however that is how it comes across.

I made the post easier to read. Other than that, since Des has already offered an opinion here, this thread belongs to Des.

OP, Des IS an attorney practicing in Arizona.... It is worth your while to read and 'listen'...

[kornellred]

Since the "quit" issue did not even raise Des' eyebrow even a bit, I will capitulate and assume that it is irrelevant. Here's hoping that the OP gets to successfully complete the Chapter 13.

[despritfreya]

I assume if my pay does go down under the Bankruptcy Courts chapter 13 guidelines that I would have a valid reason to file a possible amendment to my case! I am currently on a 60 month plan, due to my higher income however if my income goes down then I would assume that I could qualify for a 36 month plan.

As I said above, your commitment period is 60 months. You cannot get out of this current Chapter 13 in less than 36 months unless you pay all allowed claims in full. Modifying your Plan to reduce your monthly payment may be possible but shortening the duration is not - at least in your current case.

This is my question here. I do have a vehicle tied into this bk so if I get a reduced payment timetable, from 60 to 36 months, I am not sure how this would affect my payments. Also I cannot go from a ch 13 to a ch 7 as I have filed a ch 7 within the past 8 years.....

The Plan is not going to be shorter than 60 months so there is no issue. The funding in your Plan must remain high enough to pay for the vehicle and whatever else is required. As to the 7 when is the 8 years up? If you are close then theoretically you could remain in the current case until the appropriate time, DISMISS the current case and file a Chapter 7. There are issues with doing this therefore you should discuss this potential option with your attny.

To all. . . the “quit” comment did not bother me as we don’t know the situation. OP stated he/she would be getting a new job but with lower pay. Many times debtors “quit” current jobs for valid reasons such as personal difficulties in the workplace or moving too far away. Now, if it was evident that OP was quitting in an attempt to manipulate the system I would have voiced a concern.

Des.

[AngelinaCat]

And I apologize for my remark.

[magic13]

I want to know where is the relaxed and laid back state. I want to go there too. Hawaii?

[LadyInTheRed]

I want to know where is the relaxed and laid back state. I want to go there too. Hawaii?

Can't be Hawaii. psa10 said the pay is lower due to the cost of living. Hawaii has the highest cost of living in the country.

[AngelinaCat]

Can't be Hawaii. psa10 said the pay is lower due to the cost of living. Hawaii has the highest cost of living in the country.

And you pay an arm and a leg to get there! God-daughter is from Hawaii. She has been away from home since the mid 1980s and so far as I know has only been back to see her mom and sister perhaps twice. Air fare is so expensive. At least they do Skype each other...

[dmc-2008]

60 payments is not that much longer! Although I can't wait until I have 36 payments left!

Bet op talking about Oregon or Washington! ;-)

[Pandora]

You state you're currently in a 60 month plan.... so did you hire an attorney or did you file pro-se? If you hired counsel, perhaps these are questions you should be directing towards him / her.

As noted - you cant change your 60 month plan to a 36 month - it doesnt work that way unfortunately unless you pay back 100% or were already under median when you filed and your plan was extended out to 60 months due to income.

[LadyInTheRed]

And you pay an arm and a leg to get there! God-daughter is from Hawaii. She has been away from home since the mid 1980s and so far as I know has only been back to see her mom and sister perhaps twice. Air fare is so expensive. At least they do Skype each other...

That's a good thing about being in CA. I'm going to Hawaii in 2 weeks and paid about $400 roundtrip. But, that's about as low as it goes. But, if I want to go to the Carribean, it's an arm and a leg with no direct flights, which probably isn't the case from FL.