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Pay reduction prior to Chapter 7 filing

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    Pay reduction prior to Chapter 7 filing

    I currently earn around $10k/month (well above the median income for my area). My company is likely going to implement a pay reduction across the board (some folks getting hit a little harder than others, but it's pure speculation at this point).

    It's obviously preferable to file a Chapter 7 over a Chapter 13 (which I'd most certainly be in given my current income and expenses). However, can I preemptively request that my employer pay me less money and get myself into a Chapter 7? Or would this be considered some sort of fraud against the BK court to have my income adjusted into a more appropriate range for this matter?

    #2
    I don't see a fraud issue. Many here have turned down overtime or delayed promotions or new job opportunities until poat bk.
    The problem I'd have is going to my boss and requesting a pay cut. Unless you know the powers that be very well, I'd hesitate to get my personal business out in the open. You never know how people will react to the news of a bk. Your boss may be the "pay your bills" type and terminate you as opposed to a pay cut.
    And, all he'd have to say {if he gave any reason} was the business climate.

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      #3
      Perhaps suboptimal to get laid off, but that would certainly resolve any outstanding income issues.

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