Filed ch7 and may have new employment?

[inthewoodspa]

We filed in April, after my husband lost his job. My husband had a high income and compared to my small income, there was no way we could keep paying our bills. We have a lot of unsecured debt. we had our creditors meeting beginning of June and my husband got a phone call this week that he MAY have a job. He has been on unemployment for almost 3 months now. The company that fired him ( they did a company wide firing to reduce cost, they completely got rid of a whole district) contacted him because they now realize just how big of a hole they are in and want to "talk" about him maybe coming back to work. He has another iron in the fire with another company, that again "may" hire him but everything is all talk at this point. Both phone calls came this week.My husband is confident one of the two will offer him a job. His previous employer would give him the same position but at different location with different requirements and we "assume" the same salary. The other possible job would be less money but we dont know how much since there has been no offer yet. So what happens with our ch 7? our creditor is ruined now since filing, we don't want to convert to chp 13 at all. I am hoping someone has had this experience here. I have read things that it doesn't matter if you get a job, since at filing it was a snapshot of our situation and everything has been truthful and correct. I have read things that it the court can make you convert to chp 13. we haven't spoken to our attorney yet since he doesn't have any offers yet. Any advise or experience is appreciated.

[despritfreya]

Should not be an issue. Post petition earnings are not part of the Chapter 7. He was unemployed when you filed and, even today, only has a potential for re-employment. Should not be an issue.

Des.

[inthewoodspa]

Thank you. I guess we are just concerned because we were able to pay our creditors before he loss his job, ( we were up to date, but didn't have any extra money because of the situation we got ourselves into with overspending) and now that he may have a job, we are thinking that we wont get a fresh start. I imagine we have to notify the courts if he gets a job?

[despritfreya]

I imagine we have to notify the courts if he gets a job?

There is no bk code requirement to amend Schedule I in a Chapter 7. Post petition earnings are not property of the estate. In all my years of practice I have never amended Schedule I in a chapter 7 case as it relates to post petition employment nor have I ever informed the Chapter 7 trustee of such. I am sure your attny will tell you something similar.

Des.

[LadyInTheRed]

Many bkforum members have posted about getting a job between filing chap 7 and the 341. When it came up at the 341s the trustees always say "good luck." Let your attorney know and he will say what des' says.

[iduuno]

It's older info, but I found this for you:

http://www.avvo.com/legal-answers/after-filing-ch-7-bankruptcy--i-have-now-accepted--553371.html

If you used an attny to file, maybe contact him/her for info specific to your area.

[inthewoodspa]

Thank you iduuno. From my reading and research on the title 11. I think it will be a problem for us. His schedule listed "unemployed" there was no "note" saying anticipate increase etc. Since we really did not expect for him to even get a phone call from anyone. it was put quite clear to him when fired that the whole industry was doing massive layoffs and not to expect anything for at least a year for his position. The industry took a down turn and my husband contacted everyone he knew in the industry to see if anyone had a position open for his skills. I should note that BEFORE the creditors meeting the trustee sent a letter to our lawyer asking for more information and financials. One of the question he asked was what he prospect for future employment. we responded that he contacted everyone he knew in the industry, looked for work and is still looking for work in the northeast district. my attorney stated that in his response to this question that my husband is seeking work, and it depends entirely on the cost of natural gas and when companies deem it will be profitable again. The attorney noted in his email to us (when he sent a copy of his response to us) to let him know if he gets a job in 6 mos and to send along a copy of the first pay stub. ( I just read that in the email, so my apologies for not listing it sooner). So it kinda sucks that we will probably have no choice but to go to a chp 13 and live in hell for 5 yrs. we will know by the end of the week on the job and then will contact attorney.

[iduuno]

Maybe brace for the worst and prepare for the best.

Different Courts handle things differently. Run this new info by your attny. Could be like Lady said, it won't be an issue where you live.

And,.... It's not a job until your DH returns to work. Could take a while for things to fall into place. ;)

[despritfreya]

His schedule listed "unemployed" there was no "note" saying anticipate increase etc.

Nor would there be a technical need to unless he had an offer at the time of filing. In situations where my client is unemployed and capable of returning to the workforce, I typically notate that he/she is seeking employment - just my preference.

I should note that BEFORE the creditors meeting the trustee sent a letter to our lawyer asking for more information and financials

Nothing shocking in this. The Trustee gets hundreds of cases. He does not know one case from the other and it is his job to verify that the information contained in the schedules is accurate. It was probably his generic "request for info" letter which goes out to all debtors assigned to him. Ask your attny about this.

So it kinda sucks that we will probably have no choice but to go to a chp 13

I truly doubt that will happen.

So bottom line. . . Stop worrying. If an issue comes up your attny will contact you and you will deal with it at that time.

Des.