quitting for bk?

[socal1105]

Hello all...

I am considering filing for a BK7, but at this time, my disposable income is about $1,000 per month (due to not having any open expenses and living with boyfriend that pays for half of rent, utilities, food, etc). And obviously, with that much disposable income, I'm certain I would not qualify for a BK7. So to overcome that, I'm considering quitting my job right now to qualify. I know it's not good to quit a job just for the sake of filing for BK, but I am planning on quitting anyways in the very near future, but I would just be doing it a few months earlier so I can file BK. I would explain in more details, but this will be an even longer thread if I did.

So my question is if I were to quit and file for a BK7 about three months later, how badly would that look to the Trustee? I'm sure they would frown upon me quitting, but would it be serious enough for them to dismiss my petition? If so, what if my petition showed that I was "fired" instead of quitting? Would the Trustee contact my ex-employer and verify that I was fired?

I got soooo many more questions, and hopefully you guys would be able to help me sort out my situation so I can make sure I can get qualified for a BK7. Thanks everyone...

...and I'm in Orange County, CA.

[debtmonster]

My wife did it so we could be under the median. But we were also in the middle of moving. The issue didn't come up at all during our 341. I wouldn't sweat it. Do what you have to in order to bring down the disposable income or to get under the median.

My wife applied for a job at the same company 350 miles away and was hired in 3 days! Woo hoooo!

[backtoschool]

Hello all...

I am considering filing for a BK7, but at this time, my disposable income is about $1,000 per month (due to not having any open expenses and living with boyfriend that pays for half of rent, utilities, food, etc). And obviously, with that much disposable income, I'm certain I would not qualify for a BK7. So to overcome that, I'm considering quitting my job right now to qualify. I know it's not good to quit a job just for the sake of filing for BK, but I am planning on quitting anyways in the very near future, but I would just be doing it a few months earlier so I can file BK. I would explain in more details, but this will be an even longer thread if I did.

So my question is if I were to quit and file for a BK7 about three months later, how badly would that look to the Trustee? I'm sure they would frown upon me quitting, but would it be serious enough for them to dismiss my petition? If so, what if my petition showed that I was "fired" instead of quitting? Would the Trustee contact my ex-employer and verify that I was fired?

I got soooo many more questions, and hopefully you guys would be able to help me sort out my situation so I can make sure I can get qualified for a BK7. Thanks everyone...

...and I'm in Orange County, CA.

They go back six months on income. You will have to bring in six months of pay records, so you will have to be unemployed for six months to seriously affect your income if you are that much over each month.

[socal1105]

hmm... I'm thinking after 3 months of unemployment, my 6 month average income should be half of what it is now... and that would be low enough for me to qualify.

[bkmaggster]

hmm... I'm thinking after 3 months of unemployment, my 6 month average income should be half of what it is now... and that would be low enough for me to qualify.

This is what I did. Quit in March, filed in June. No questions asked, but man the budget has been TIGHT.

[socal1105]

This is what I did. Quit in March, filed in June. No questions asked, but man the budget has been TIGHT.

that's exactly what I was thinking... so the Trustee didn't question why you quit? I assume the Trustee wouldn't like people quitting just to get a BK

[shabam]

My wife applied for a job at the same company 350 miles away and was hired in 3 days! Woo hoooo!

Why that close?

[backtoschool]

that's exactly what I was thinking... so the Trustee didn't question why you quit? I assume the Trustee wouldn't like people quitting just to get a BK

I got laid off in January and decided to go back to school instead of looking for a full time job. That gave me six months to get my formerly high income down. But I think it is easier to explain "hardship" if you have more than a couple of months unemployed. Just my opinion....

[socal1105]

I got laid off in January and decided to go back to school instead of looking for a full time job. That gave me six months to get my formerly high income down. But I think it is easier to explain "hardship" if you have more than a couple of months unemployed. Just my opinion....

I thought 3 months of unemployment would suffice, but maybe waiting 4 or 5 months would be better... thanks for your suggestion

[bkmaggster]

that's exactly what I was thinking... so the Trustee didn't question why you quit? I assume the Trustee wouldn't like people quitting just to get a BK

Trustee didn't say a word about it. There's really no way they could prove it, and I don't think there is anything in the BK code saying you have to be employed.

I wasn't working a "real" job anymore at that point anyway, just a part-time retail job to help with bills. It was way more stress than it was worth.

[kornellred]

If your petition "shows" that you were "fired" when in actuality you quit - that's called a LIE. If you LIE on your petition, you are attempting to defraud your creditors. Not too much good came come of that. I have no idea whether there is any question relating to reasons why you do not have a job in the bankruptcy paperwork - there probably is not - and it's no ones business but your own in the first place.

The best advice is to refrain from filing until the 6 month look-back period is exceeded. Then, you have reality on your side when you file. No income = no disposable income. It's as simple as that. If, at that time, anyone is curious as to why you are no longer employed at your current job, you can tell them that the envronment was not conducive to your well-being.

[bkmaggster]

I got laid off in January and decided to go back to school instead of looking for a full time job. That gave me six months to get my formerly high income down. But I think it is easier to explain "hardship" if you have more than a couple of months unemployed. Just my opinion....

I've never heard of anyone asked for an explanation of "hardship" or about employment as part of their bk. YMMV.

[bkmaggster]

If your petition "shows" that you were "fired" when in actuality you quit - that's called a LIE. If you LIE on your petition, you are attempting to defraud your creditors.

There is NOTHING on the petition relating to employment, whatsoever. What are you talking about?

[debtmonster]

There is NOTHING on the petition relating to employment, whatsoever. What are you talking about?

Exactly. If you want to quit and have no income to live on, that's totally up to you.

You have to play the game by the rules. 6 months back.

If you file in July, they take the income from January to June. Doesn't matter if you quit, got laid off, or whatever the case may be. There's no law saying you're not allowed to file BK.

People quit their jobs for all kinds of reasons, not necessarily to qualify for a Chapter 7.

I quit my job because I had a huge fight with H.R. I couldn't stand it, so I bailed. Plus the fact that I was driving 93 miles one way to work each and every day. That's almost 1,000 miles per week on my car. I couldn't find any similar paying jobs closer to me since I lived way out in the sticks.

The UST didn't ask me any personal questions. When you're a no-asset case, it's super easy. If you want to keep expensive things, then it can get complicated.

When I filed, I basically told them all to come and get it!

Remember, you can always buy it again. It's not the end of the world. Don't sweat it. I have never stressed one bit over this entire ordeal. The only stress I had was fighting with my wife for not having money to pay bills or food.

Learn to budget your money. Check on www.mint.com.
If you own a Mac, look for this software called Money Well to help you manage a budget.

[AngelinaCat]

In this economy, I personally would be very scared of quitting a job in order to qualify for a BK--especially in California. I have been unemployed except for a very small PT job for almost two years. I was passed over for a FT job due to age. In this area of Florida there are very few prospects.

Why can't you use the extra money you have and pay down your debts instead of trying to BK? Just my opinion.