Cutting back on hours as opposed to quitting job

[4ever]

I talked to a lawyer about filing for bankruptcy and just going on what we make he said it would be a chapter 13 as we make about $4000 too much to file for chapter 7. My wife has some health problems and has been at her job for 28 years so having her cut back from 5 days a week to 2 days a week at her job would be better for her healthwise and would maybe help us to get into a chapter 7. All the posts I found on here was just about quitting the job, not cutting back hours. We have been working with a debt consollidation company since Nov. last year and they managed to settle one account. But Capitol won't deal with them and that's why we are turning towards bankruptcy as a last resort. Anyway I guess the main question is, would cutting back on her work schedule be less as bad as just quitting a job and then filing?

[Exployer1234]

They are going to look back at the last 6 months. You would need to reduce your income to come under the median for the last 6 months, plus the trustee will look at what your future income would be as well. Also the trustee will review your past 2-3 years worth of the taxes filed.

If your wife is ill and working part-time would improve her quality of life it may be something to consider. Now something else to consider is if you can handle her only working 2 days after BK. If you will still be able to live comfortably with the hour reduction's then it will be the right choice, but if you are going to struggle after BK then your answer is it is not the right choice.

When the company I worked for closed i had to take a very low paying job. I am not saying it is easy living on less money, but in my household we have made it work. I am able to finally breath. I am also chronically ill and not working as many hours has improved my quality of life. I am able for the first time in my life not feel so sick, but do have a peace of mind that I can still pay my bills. I think when it comes down to a decision you have to look at the pro's and con's. Making a choice just to cut your hours down to come under the median may not be the best choice to make. On the flip side if you are cutting hours back to improve your quality of life because you are too ill to really do the job may save your life. I know for me it has made a world of difference. I went from being on 3 different medications, always sick every day, to finally being sick once every 2 months and one one medication for 4 months and off that medication for 2 months. I now can enjoy my time with my family, instead of being on my couch not being able to move.

Good luck on what you decide.

[4ever]

Thanks for the quick reply. We would be able to "make it" if we cut back, although we would miss the luxury of not having the credit cards to buy what we wanted at whim. We did try paying on them when we bought something, but then we "needed" something else before the bill came in and eventually the debt just kept adding up. Will be glad to get it over with no matter which way we file. 13 just seems so much scarier in what you have to deal with and what they can take from you.