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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2667
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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We filed Chapter 13 earlier this year after receiving a ...

Customer Question

We filed Chapter 13 earlier this year after receiving a promotion for my job. The employer paid for my move, and I owe money back to them. Since I filed Ch 13, the moneies owed were to be paid back in the monthly bankruptcy payment to the trustee. Now, my employer is saying they will demote me and lower my pay $3000 per year if I don''t repay the dept now. Can they do that? Or does it violate 11 USC 525?
Submitted: 9 years ago.
Category: Bankruptcy Law
Expert:  Marcus Parker replied 9 years ago.
Is the amount owed to the employer scheduled on the 13?
Customer: replied 9 years ago.
Reply to XXXXX XXXXX's Post: yes, the amount owed to the employer is on the 13 schedule to be paid. Specifically, I work for the federal government, and they give us money in advance for a relocation that exceeds the costs projected for room.board, etc. Because we didn't use all of the money, we were expected to pay it back. We filed bankruptcy chpt 13 within 3 months after the move when we lost our house in California (statistic of the housing market!) The repayment is scheduled to be paid in the chtpr 13, but the govt investigated the incident anyhow, and are threatening to demote me and lower my pay, even though I have a court order stating I am paying the money back.

Another issue - I am up for a promotion in September from a GS09 to a GS11, which is appx $1400/yr raise. When I took the promotion that got me to Louisiana last year, the automatic promotion from GS09 to GS11 within a year was guaranteed. Can they hold me back from my promotion because of my bankruptcy and the fact that I have the payment to be scheduled for them? Or can they legally hold me in my current position until all monies are satisfied at the end of the bankruptcy?

Thanks again for your help!