Income Increased During BK

[mand15]

what happens if your income increases after you file for a bk?

[jribe]

what happens if your income increases after you file for a bk?

it shouldn't really matter.. the only thing is if you've had your 341 yet. When you file BK- it's basically a financial snapshot in time. However, when you're asked about any changes at your 341- you would need to disclose that.

[mand15]

what's a 341?

[laurannm]

341 is the meeting of creditors you will have to attend about 30-45 days after you file. Search around these board and you'll find more info the whole process then you could ever imagine

[soleprop]

if your income increases substantially prior to the 341 meeting with the trustee (and any creditors that appear), you'll be required to discuss the increase under oath (uncomfortable).

[mand15]

my situation is i'm 100% commission and a loan officer. business has picked up since jan 09 and my income wouldn't have increased much from the last month (mar) of my means test but it's will be more than the 6 mo avg. then again with today's market, who knows. i'm just trying to figure out what to expect from the 341. so i guess i won't really know until my 341 it my ch 7 will go thru? does the trustee see your paystubs or how does that work? the process is confusing to we novices.

do you get questioned or need to provide income verification at some point prior to discharge as well?

laurannm, you're right lots of info on the 341 here.

[soleprop]

you will get questioned AND you need to provide income verification up to the 341 meeting - although all bk law i've read indicates that it is the income 6 months prior to filing that gets scrutinized/considered during the bk process. my trustee required paystubs up to the 341.

[mand15]

ouch...that's not good but thanks for the info. this is definitely something i need to speak to my attorney about.

[laurannm]

Well you may or may not need to discuss an income increase with the trustee. At our 341 we were not asked if there were any income changes. Your attorney can best tell you whether or not this is a typical question at the 341 in your area

[limage]

I am in the same boat- I too am a loan officer and plan on filing this month after I get my income tax return so that I can pay my attorney. My check on Friday will be the first decent paycheck in months. But it wouldn't begin to cover all of my liabilities- I just have more left over now after paying for my condo fee, car payment, utilities, etc. It does feel good to start making decent money again-I think there is light at the end of my tunnel.

[mand15]

limage, i understand more than you know. i hope things continue to go well for you.

i checked with my attorney and he said that they won't question it at the 341 so not to worry about it. he comes highly recommended and has been doing bk's for 40 years so i trust him.