What If You Don't Work When You Could?

[moe]

One thing I've been wondering: What if I took a leave of absence from my job that was unpaid?

My income would go waaaay down. But I could work. It would be my own choice not to earn income.

Wouldn't the bankruptcy judge/trustee/whoever frown up on that?

(Also, my income would go back up. I was just wondering if it would affect my options.)

[debtinohio]

I would quit to file a 7 but this is pointless in a 13 if you plan on going back to work after filing thus having to report this back to the Trustee and raising your payment anyway.

I would love to quit now, file a 7 and be done with it but I have assets and don't want the hastle.

[SMinGA]

Plus if you have sporadic or sketchy work history before filing ch. 13, the trustee may dismiss due to lack of feasibility. Need to be able to show regular, consistent income to fund the plan.

[livnlow]

My wife quit her job 6 months ago so we could qualify for a Ch-7. We should be filing within the next week. Our attorney said she could go back to work after the 341 Hearing if we really need her income but to wait about 2.5 - 3 months after filing if we could.

If we somehow end up in a Ch-13, then there will be no point in her going back.

[frogger]

There is not a law requiring you to work. After all, millions of people depend for me to work instead.......

[keptdigging]

I'd be careful. I have definitely read that "deliberate unemployment" can be considered abuse. At minimum consult your attorney and probably have a reason for that leave other than just bankruptcy planning.

[keptdigging]

And frogger... here in CA, if you are under the jurisdiction of Family Court as a parent, you absolutely CAN be ordered to get a job by a judge.

[Flamingo]

One thing I've been wondering: What if I took a leave of absence from my job that was unpaid?

My income would go waaaay down. But I could work. It would be my own choice not to earn income.

Wouldn't the bankruptcy judge/trustee/whoever frown up on that?

(Also, my income would go back up. I was just wondering if it would affect my options.)

It would be questioned why you are not working and what was the reason for the leave of absence and the expected return. You would probably have to provide your attorney and trustee with a copy of the document with that information that you have to sign and submit to HR. Also, who knows during that time what can happen - jobs are elimianted all the time and if your position is downsized, you may not have a job to return to. Also, bankruptcy does not solve unemployment or cash flow issues. You are taking a risk and only you can determine how high that risk is for you personally.