employment opportunity during the BK!?!

[tiger4life]

As described in past the treads I am self-employed. I am planning on filing Chapter seven bankruptcy but just found out that a company is willing to hire me. I have $77,000 in unsecured debt and have already been threatened with lawsuits and have another $120,000 in the second mortgage which I used to pay business debt. Because of my first mortgages around $200,000 and the second mortgage is $120,000 and my tax assessment is at $322,000 feel safe in keeping the house and fully intend to keep the house. I have retained the lawyer but do not know when the file date would be, I still have a few things to take care of before I can file so I am thinking somewhere around 60 to 90 days from now.The company that is wanting to hire me will need my services more than likely at the first of the year. What are my options at this point in time, my main concern is the timing of it all.
Oh yea the $77,000 in unsecured debt is only in the business with my signature of course. Would this affect my future employer in any way and or can I be garnished wages from this new job.
This all started about a year and a half ago he was interested in buying me out but because of the economy and ugly financials he is interested in just hiring me on and has said he will give me the opportunity to make bonuses to help pay down my second mortgage. He is hiring me to start another division of his company that I will be over but without all the headaches and being self-employed like I was.

Sorry for the long read any help would be tremendous.

[tiger4life]

Wow I must ask the wrong questions on here, anyway I think I found part of my anwser. After filing they can only get 25% unpaid wages.

[BobMango]

After reading your post I wasn't quite clear exactly what you are asking?

If you take a new job and don't file, your wages can certainly be garnished (after judgments, etc.) If you file Ch 7, then presumably those debts would be discharged and any judgments vacated so no threat of garnishment.

I don't see how any of your debt would accrue to your new employer. You are hiring on, not selling your business to him.

The main area of concern I think you could have would be getting thrown into a Ch 13 if you have enough income because of the new job to support a Ch 13.

[tiger4life]

Thanks for the reply, this company was going to buy me out but now that is not going to be offered just hire me on and get paid a salary plus bonuses based on profits for my division. So in Ch. 7 after filing and /or discharge there is no garnishment, can they garnish on CH 13

[BobMango]

The only time you would be subject to garnishment is if you fail to pay and have a judgment entered against you. If you file 13, your debts as of your filing date would be included in your payment plan. After you complete your payment plan all of your debt would be discharged.

Bottom line is that either Ch 7 or 13 can resolve any issues you have with potential garnishment for your current debts. That is one of the benefits of the automatic stay in bankruptcy, to give you time to develop a plan to deal with your debt, whether it is to surrender property, discharge debt or reaffirm secured loans, without the threat of asset seizure or garnishment.

Most would probably advise a Chapter 7, but if you have significant non-exempt assets you want to keep, or have lots of money left after allowable expenses, then Chapter 13 may be your only option.

[berrymom35]

You should go ahead and file now and get your 341 out of the way...and then start your new job. This is what we did and it went smoothly.

[Michigan1951]

Good advice, berrymom35!!

[cismith54]

My situation is sort of similar. We filed Ch 7 12/3/09. The 341 was 12/31/09. My husband started a new job 1/18/2010. Can the trustee force into Ch 13 now?

[lrprn]

My situation is sort of similar. We filed Ch 7 12/3/09. The 341 was 12/31/09. My husband started a new job 1/18/2010. Can the trustee force into Ch 13 now?

No. When you file Ch 7, your bankruptcy estate is set on filing day. Any income changes that come along after your 341 shouldn't matter.

Also in the future, please avoid posting to threads that have been inactive for several months like this one - it's against our forum rules. It's better to start a new thread of your own to ask questions - thanks!

Congratulations on your husband's new employment! What a wonderful way to get a real fresh financial start after your Ch 7 is discharged!

[cismith54]

Sorry. I am sort of a newbie to this. I probably should go back and read the rules that I overlooked.

Thanks again, as this puts my mind at ease.

[mtbc]

meta

Is it really against the rules? I was aware of the one about not bumping without specific benefit to doing so, but I would have thought that contrast with another similar case was exactly some benefit -- I'd thought the rule was more about people not just posting "* bump *" or whatever to bump the thread back higher again. Was I wrong about the intent? Have I been doing wrong in posting to some other old threads if it seemed to me that I could still add something useful that would help other people searching threads and finding those old ones? Oops.

[Michigan1951]

Well, went I started, I did the same thing as cismith54, and they gave me an more than just a warning. I got warned with a point taken away or something. It really scared me as I thought I robbed a bank or something...lololo

I agree with you mtbc on this, and like your suggestions.