should we decrease income

[Flamingo]

Here's the thing: I recently started a new job a week and a half ago. I drive two hours roundtrip to work each day and don't make much money, especially for that amount of driving. But I do make money, which increases our income, so we likely won't fall below median in the near future. However, after finding out yesterday about how close we are to the median, I started wondering if it would be smarter to quit my job until our income drops enough and then find something else once this is over. At the latest, we would be able to file the start of July and should be well below the median income by then. We could probably make do on my husband's salary if I put my student loans on hold and he get keep some steady hours for a few months. It would be tight, but we might be able to make it, especially since I wouldn't have the cost of driving two hours a day, which eats up gas like crazy. My husband is really pushing for us to take this direction, because he (like me) does not want to end up in a Chapter 13 and he thinks it would be better for the long-term for me to not work for a few months and us to have a few more really rough months and then have no problem with the Chapter 7 than to have to pay into a Chapter 13 plan for the next five years. I'm not crazy about my new job, but I'm uncomfortable just quitting, especially so soon after starting and I'm worried about making it financially for a few months.

If you reread your posting above, your "could probably's" and "might be ables" stand out like red flags. As to you job situation and short-time there, that could have a major effect, no matter how bad the job and commute, on obtaining a new job in this economy because you left the job so soon knowing you would have a long commute and low pay to begin with. It's not like you found that out after the fact. In locating a new job, painting the financial picture may help but plenty people have long commutes like that but in your situation, you are quiting not for the low pay/commute, you are quitting to be able to file a Chapter 7. I too would be uncomfortable in quitting just as you state you are.

Making sound decisions is difficult and your situation is a bit complicated to state anything "might" work. I suggest you work closely with this attorney and tell him you already quit and hopefully you can get around this mess and make it through the next several months and not run into anymore issues as to your quitting.

Note - I commute each day 120 miles round trip which can be 2 hours each way at times so I know what it is like to have a long commute and I totally understand your concern about the cost. So I do understand your point there and I too would question the cost against the salary but if one needs a job, one needs a job unless and until a better one comes along.

[frustrated7]

I quit the job yesterday. I felt really bad about doing it, but as my husband said, I made the decision that was best for my family. The attorney called this morning and said he expects us to be able to file in April. I KNOW we can make it on my husband's income with the little bit we have left from our tax return until at least June or July. The bills for the month of March have already been paid, since we thought we were officially going to file this week. My husband also has the ability to sell back vacation days if his employer starts the day long layoffs again, and right now he is getting overtime. With the new median incomes, we should qualify the start of April. I know it seems counterintuitive to quit a job for BK, but we didn't want to end up forced into a Chapter 13 for five years when we are so very close the median income, not to mention I am not sure I would have stayed at this job for long, since there were serious problems with it. Once this is all over I will find a job closer to home. (One that does not have cigarette smoke all through the building, which makes me sick.)

Thanks for everyone who responded. It wasn't a decision we took lightly, but my husband and I both agree that it is the best decision for our long-term future. He wasn't happy about me taking a low-paying, no benefits job with such a long drive in the first place.

[fltoo]

How about some common sense here? If the job is in your field and you are making a good salary and there is nothing in your area to compete with this job, then a 2 hr. commute might make sense. But, I would still be looking for a job replacement closer to home.

A two hour commute for a low paying job and no benefits makes no sense. Yes, McDonalds and such are still hiring. Or, get creative, dog walking, babysitting, crossing guard.

OP, how much money are you clearing after gas, wear and tear on car, nevermind the aggravation and stress of driving two hours back and forth for a job?

I am betting you can find a job closer to home with the same or more net money. I am not one to live in fear of what might happen. IMO, quitting makes sense.

[kenshirley]

Same thing happened to us in October. We could not sell our house or RV and I could no longer work and my wife lost her job.
We moved into a rental, surrendered the house and RV and went to file a month later to find out that my wife's wages counted for the last 6 months and with our retirement incomes we were over the median.
So we knuckled down and waited rather than file Chapter 13. I did want want to spend the next 5 years with nothing left over. This is after all our retirement.
Waiting for Chapter 7 has been worth it for us.

[frustrated7]

kenshirley,

I know that waiting for a Chapter 7 will be better for us, even though it will be a little rough here in the short term. We will just have to be extra frugal and I know we can make it a couple of months until this is over. Our attorney is pretty sure we will be able to file in April, so that is only a month away, and then we wait til the 341 meeting and things should be okay. Here's to hoping.

[lalap123]

I am in the same boat...

Cashed in pension fund in early February...puts us over the median by quite a bit even after the new numbers came out the other day.

Right now I'm confused and waiting to hear back from an atty so that he can clarify. I've read that even over the median you can very likely still qualify for ch 7 once they look at your projected future income (from job sources only...why would they think we could pay X amount of money per month when the pension money is all gone???) and your expenses. Then I've read that an atty will make you wait 6 months for your income to get low enough so that you are clearly ch 7. The only thing I can figure is that this is a really gray area and that different trustees (whether by personality, by district, or other) can and will force you into a 13 even if they know you won't be able to pay it and would end up defaulting. Sounds crazy to me, but then again I'm sure they know more than I do about this whole process.

I was planning on filing very soon but am now seriously considering waiting six months so that I'm not in this gray area. Good luck to you!