When can income increase after BK7?

[berrymom31]

I'm a contractor and will stop taking on projects next month in order to qualify for chapter 7. How long after filing can I begin working again? The guy I contract for wants to know, and I may do some projects for free in order to keep my spot open during the next 6 months.......

[Priceless ProSe]

I'm a contractor and will stop taking on projects next month in order to qualify for chapter 7. How long after filing can I begin working again? The guy I contract for wants to know, and I may do some projects for free in order to keep my spot open during the next 6 months.......

If you do this work "for free" I wouldnt tell anyone about it (not an answer to your question I know). It sounds fishy and the trustee might think that you are doing work now and will be paid for it after the BK (Im just saying thats what I would think). ANyways its not the trutees business what you are doing in your "free" time right?

[berrymom31]

Oh, I plan on keeping this between my boss, myself and ......us! I really will do the work for free, because I love it for one, and it is the perfect situation..I get to work at home, only go in once a week for 3 hours and I would do it without getting reimbursed after the six months just to keep the spot open! I know it sounds crazy, but it allows me to still stay home with my kids, attend school parties and so on. Out of all the things I am losing, house, car.....this job hurts the most!!

[BKParalegal]

To answer your original question, you typically do not want to alter your income and expenses prior to your 341. The trustee will ask if your income has changed and you need to be truthful, after that, outside of a windfall, you are good to go.

Good Luck

[laurannm]

To answer your original question, you typically do not want to alter your income and expenses prior to your 341. The trustee will ask if your income has changed and you need to be truthful, after that, outside of a windfall, you are good to go.

Good Luck

What happens if your income does change between filing and your 341? I received a 3.8% raise the day after we filed, which amounts to monthly gross of around $280. Will the trustee force us to amend our schedules and continue our 341?

[BKParalegal]

They won't ever continue your 341, that only happens if you or the trustee request it. And it depends on the trustee, they could request that you redo your Schedule I and J if it was close to begin with. Though I doubt it.

Good Luck

[PoorGrammyinBK7]

What is a Windfall?

To answer your original question, you typically do not want to alter your income and expenses prior to your 341. The trustee will ask if your income has changed and you need to be truthful, after that, outside of a windfall, you are good to go.

Good Luck

What exactly constitutes a "windfall"? I have heard various opinions. Is there a guideline or absolute law for this?

[BKParalegal]

A windfall in bankruptcy is basically something gained out of the ordinary course of life. For instance, winning the lottery, an inheritance, etc.

[debtor36K]

My lawyer told me I could win the lottery after I file and it wouldn't matter. Doesn't sound right to me but that's what he said!

[FreshLikeADaisy]

Debtor, your atty is correct: the law specifies various sorts of income that are considered part of the bk estate that have to be declared within 180 days of filing (inheritance is one) and the lottery is not listed! However, if you did win the lottery before your bk was closed, your trustee might well have something to say about it in a "totality of circumstances" objection. Check this out: http://www.thesmokinggun.com/archive/0120051lotto1.html

[MajorMike]

I'm a contractor and will stop taking on projects next month in order to qualify for chapter 7. How long after filing can I begin working again? The guy I contract for wants to know, and I may do some projects for free in order to keep my spot open during the next 6 months.......

Free? or under the table.....Hmmmmm...nobody works as a contractor for 6 months for free...

[MomIcantFindmy]

I don't think it is really free but more like delayed payment. At least that is how I understand it. For the purpose of Bk right now it is considered "hobby" not work.

[Cali]

Some contractors don't receive full payment until the project is completed.

Free? or under the table.....Hmmmmm...nobody works as a contractor for 6 months for free...

[sick of debt]

My lawyer told me I could win the lottery after I file and it wouldn't matter. Doesn't sound right to me but that's what he said!

That is what my lawyer said.

[sick of debt]

Some contractors don't receive full payment until the project is completed.

That needs to be reported as accounts receivable, my husband is a contractor. He is holding off on BIG jobs for now.