New Job Offer while filing Chapter 13

[mormand]

Hi,
I just provided my attorney all the info to file for Chapter 13. We'll probably be filing next week.
I just received a job offer that I need to answer by next week too. It will bring my yearly salary from $165K to $200K

I will notify my attorney and get his input, but want to hear from other cases (hopefully California) as to how the Trustee may see that.

Should I take the job?

Will all of my additional income go to the BK estate plan ?

I would have to move as part of this change if I take the job offer and I'm sure my rent would increase by at least $1K / month

I would like to learn all possible advise on this.

Thank you!

[justbroke]

I would take the job. There's no way for any of us to know how much would need to go towards the plan. Only your attorney or the Trustee can figure that out. I suspect that your attorney will do a new Schedule I and Schedule J, and maybe even a new Form B22-C to recalculate the DMI number.

As you have already guessed, some or all of the additional income (of $3K/month) will go to repaying your creditors. As I wrote, you need to recalculate your expenses so that's why no one can say exactly what the cost would be. Please be aware that you can't just pick any rental unit. Your cost must be within the guidelines for that particular county in your State. The Trustee may question why you don't commute and save $1,000 if the distance is > 50-100 miles (a number I plucked from my skull).

If there is no net-net for the unsecured creditors or even yourself, then it may not be worth taking the job to "earn more money" when there is no net new money.

[Carmella]

Will you be able to hold off filing until the attorney can advise you on how it will effect your BK plan? I would try to get the info on how it effects your BK 13 payment. Also find out how it effects if you move because you may have to go through the trustee if you plan to buy a house or sell a house after BK is confirmed and some apartments won't want to rent to while in an active BK. The apartment my daughter moved to did not allow anyone with active BK and I could not be a cosigner, if she needed one. Fortunately, she did not need a cosigner. If your plan is not 100% payback then it's possible your payment would be more than it would at the current income.

The best thing is give the new information to your attorney and let him advise you on how the increased income and moving will effect your case.